________ is the simultaneous purchase and sale of foreign exchange for two different dates.

Question

Quizplus · Accepted Answer

A currency swap involves the simultaneous purchase and sale of foreign exchange for different dates. This type of transaction is often used to manage foreign currency risk, as it allows two parties to exchange different currencies for a specified period of time and then exchange them back at a later date. Currency hedging involves using financial instruments to offset the risk of currency fluctuations, while currency speculation involves betting on the direction of currency movements. Currency arbitrage involves taking advantage of differences in exchange rates between different markets.

________ Is the Simultaneous Purchase and Sale of Foreign Exchange