Transactions in which dealers in foreign exchange markets enter simultaneously into spot and forward transactions are referred to as:

Question

Quizplus · Accepted Answer

Such transactions are commonly known as swaps, where traders simultaneously enter into a spot transaction (buying or selling currency for immediate delivery) and a forward transaction (buying or selling currency for future delivery). These swaps allow traders to lock in a fixed exchange rate for future transactions, reducing their risk exposure.

Transactions in Which Dealers in Foreign Exchange Markets Enter Simultaneously