A ____ involves an exchange of currencies between two parties, with a promise to re-exchange currencies at a specified exchange rate and future date.
A) long-term forward contract
B) currency option contract
C) parallel loan
D) money market hedge

Question

Quizplus · Accepted Answer

A parallel loan involves two parties exchanging currencies and agreeing to re-exchange them at a specified rate and future date, effectively acting as a currency swap.

A ____ Involves an Exchange of Currencies Between Two Parties