The primary reasons for a counterparty to use a currency swap are to play in the futures and forward markets.
举一反三
- The primary reasons for a counterparty to use a currency swap are( )。 A: to hedge and to speculate. B: to play in the futures and forward markets. C: to obtain debt financing in the swapped currency at an interest cost reduction brought about through comparative advantages each counterparty has in its national capital market, and the benefit of hedging long-run exchange rate exposure. D: both a and b
- The<br/>primary reasons for a counterparty to use a currency swap are() A: to<br/>hedge and to speculate. B: to<br/>play in the futures and forward markets. C: to<br/>obtain debt financing in the swapped currency at an interest cost<br/>reduction brought about through comparative advantages each<br/>counterparty has in its national capital market, and the benefit of<br/>hedging long-run exchange rate exposure. D: both<br/>a and b
- When a central bank intervenes in the ________, their intention is to ________. A: spot market; convey a clear signal to the markets B: futures market, hide its actions from the markets C: forward market, hide its actions from the markets D: swap markets, convey a clear signal to the markets
- The forward/forward swap means selling and buying simutaleously a certain foreign currency forward for a certain maturity date.
- International businesses use foreign exchange markets for all of the following reasons except: A: to receive payments from foreign investments that may be in foreign currencies B: to pay a foreign company for its products or services in its country's currency C: to invest for short terms in money markets when they have spare cash D: to cover themselves from all risks involved in currency speculation