The
primary reasons for a counterparty to use a currency swap are()
A: to
hedge and to speculate.
B: to
play in the futures and forward markets.
C: to
obtain debt financing in the swapped currency at an interest cost
reduction brought about through comparative advantages each
counterparty has in its national capital market, and the benefit of
hedging long-run exchange rate exposure.
D: both
a and b
primary reasons for a counterparty to use a currency swap are()
A: to
hedge and to speculate.
B: to
play in the futures and forward markets.
C: to
obtain debt financing in the swapped currency at an interest cost
reduction brought about through comparative advantages each
counterparty has in its national capital market, and the benefit of
hedging long-run exchange rate exposure.
D: both
a and b
举一反三
- The primary reasons for a counterparty to use a currency swap are( )。 A: to hedge and to speculate. B: to play in the futures and forward markets. C: to obtain debt financing in the swapped currency at an interest cost reduction brought about through comparative advantages each counterparty has in its national capital market, and the benefit of hedging long-run exchange rate exposure. D: both a and b
- The primary reasons for a counterparty to use a currency swap are to play in the futures and forward markets.
- The<br/>immediate (two-day) exchange of one currency for another is a A: forward<br/>transaction. B: spot<br/>transaction. C: money<br/>transaction. D: exchange<br/>transaction
- If the forward exchange rate, defined as the domestic currency price<br/>of the foreign currency, is smaller than the spot exchange rate,<br/>there is a ( ). A: forward premium on the foreign currency. B: forward discount on the foreign currency. C: shortage of dollars. D: surplus of dollars.
- An<br/>agreement to exchange currencies sometime in the future is referred<br/>to as which one of the following?() A: Forward<br/>trade B: Hedge C: Gilt D: Forward<br/>exchange rate E: Spot<br/>trade