Which of the following items is a commonly used swap?

Question

Quizplus · Accepted Answer

Foreign currency swaps are commonly used swaps where two parties exchange currencies for a specified amount of time and then exchange back to their original currencies at a pre-agreed exchange rate. This type of swap is often used to mitigate currency risk in international trade or investment. Options swap (B) and foreign currency derivatives swaps (D) are not commonly used swaps, and investments in foreign operations swaps (C) are not a type of swap.

Which of the Following Items Is a Commonly Used Swap