What is the name of a swap in which the counterparties sell currencies to each other with a concomitant agreement to reverse the exchange of currencies at a fixed date in the future at the same price, and where the interest rates for the two currencies are reflected in the two exchanges but paid separately?
A) aFXswap
B) an in/out swap
C) a currency swap
D) a quanto swap

Question

Quizplus · Accepted Answer

This swap is called a currency swap, where the counterparties agree to exchange currencies at a fixed date in the future and the interest rates for the two currencies are reflected in the swap. It is different from a regular FX swap (A) because the exchange is reversed at a fixed date and the interest rates are paid separately. In/out swap (B) and quanto swap (D) are not applicable to this type of swap.

What Is the Name of a Swap in Which the Counterparties