Party A has agreed to exchange $1 million U.S.dollars for $1.21 million Canadian dollars.What is this agreement called?

Question

Quizplus · Accepted Answer

The agreement described is a currency swap, which involves the exchange of one currency for another at an agreed-upon rate. The parties involved may do this to manage currency risk or take advantage of differences in interest rates between the two currencies. None of the other choices are relevant to this scenario.

Party a Has Agreed to Exchange $1 Million U