All of the following are steps involved in basic currency swaps EXCEPT
A) counterparties exchange the net interest at the end of the swap.
B) the parties exchange principals in two currencies.
C) the parties exchange periodic interest payments over the life of the agreement.
D) the parties exchange the principal amount at the end of the agreement.

Question

Quizplus · Accepted Answer

In basic currency swaps, counterparties exchange principals in two different currencies at the start and end of the agreement, and they exchange periodic interest payments over the life of the agreement. However, they do not exchange the net interest at the end of the swap; instead, interest payments are typically exchanged at regular intervals throughout the life of the swap.

All of the Following Are Steps Involved in Basic Currency