Which of the following statements regarding Islamic Foreign Exchange FX. Swap is invalid?
A) FX is contract that has been designed as an Islamic hedging mechanism to minimize the exposure of market participants to the volatile and fluctuating market currency exchange rate
B) FX forward contract is only a one-stage contract that only requires the initial exchange and that concludes the contract
C) FX swap is meant to protect the financial institutions from fluctuating borrowing rates
D) FX Swap involves a two-stage contract where there is an initial exchange at the beginning and subsequently another exchange takes place at the expiration of the contract
Correct Answer:
Verified
Q132: Risk mitigation generally includes the followings EXCEPT:
A)
Q133: In order to effectively absorb or manage
Q134: _ is a tool that helps companies
Q135: Which of the following statements is true
Q136: Differences between forward and futures contracts include:
A)
Q138: Risk transfer involves:
A) the use of derivatives
Q139: _ requires social interaction among the market
Q140: _is used in pricing a swap.
A) fair
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