Which of the following would be considered an example of a currency swap?
A)Exchanging a dollar interest obligation for a British pound obligation.
B)Exchanging a eurodollar interest obligation for a dollar obligation.
C)Exchanging a eurodollar interest obligation for a British pound obligation.
D)All of the above are examples of a currency swap.

Question

Quizplus · Accepted Answer

A currency swap involves exchanging interest and principal payments in one currency for those in another currency. Therefore, all of the choices listed involve exchanging obligations in different currencies, making them examples of currency swaps.

Which of the Following Would Be Considered an Example of a Currency