Foreign exchange swaps involve:
A) selling one currency on the spot market and at the same time purchasing it forward.
B) trading goods rather than money to improve efficiency.
C) delaying payment of a spot contract until the currency is actually delivered.
D) a promissory note with repayment in 60 days.

Question

Quizplus · Accepted Answer

Foreign exchange swaps involve selling one currency on the spot market and at the same time purchasing it forward. This allows for the exchange of currencies at a future date without being exposed to currency fluctuations in the meantime.

Foreign Exchange Swaps Involve