A(n)______________ is purchase and sale of a given amount of foreign exchange for two different value dates,at the same time.

Question

Quizplus · Accepted Answer

A currency swap involves the purchase and sale of foreign exchange for two different value dates at the same time. This allows two parties to exchange currencies for a certain period of time and then exchange again at a later date, with the exchange rate being fixed at the time of the initial transaction. This is often used by companies that have exposure to foreign exchange rates and want to hedge their risk.

A(n)______________ Is Purchase and Sale of a Given Amount of Foreign