A currency swap is most similar in economic purpose to a
A)basis swap
B)parent company loan
C)debt-equity swap
D)parallel loan

Name: A currency swap is most similar in economic purpose to a A)basis swap B)parent company loan C)debt-equity swap D)parallel loan
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Question

Quizplus · Accepted Answer

A currency swap and a parallel loan both involve two parties exchanging currencies to meet their respective needs, typically to obtain financing in a foreign currency without exposure to foreign exchange rate risk.

A Currency Swap Is Most Similar in Economic Purpose to a