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Which of the Following Is False

Question 42

Multiple Choice

Which of the following is false?


A) Currency swaps are used to reduce a firm's exposure to foreign exchange risk.
B) The main benefit of currency swaps over currency future contracts is that swaps can be done for multiple- year periods whereas future contracts are used to hedge foreign exchange risk for shorter periods of time.
C) The volume of interest rate agreements and currency swaps has decreased dramatically, due to the global financial crisis.
D) Securitization began in response to a shortage of funds for mortgages in the 1970s and 1980s.

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