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

Currency swap involves exchanging the principal and interest payments of two different currencies, typically to manage foreign exchange risk or access cheaper funding. Therefore, all of the given options involve exchanging obligations in different currencies, making them examples of currency swaps.

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