ACI
3I0-013 · Question #53
Which of the following statements apply to an FX Swap?
The correct answer is D. It reduces credit risk with the counterparty, as compared to money market deals. See the full explanation below for the reasoning.
Question
Which of the following statements apply to an FX Swap?
Options
- AIt consists of two separate transactions, dealt with two different counterparties.
- BIt replaces a pair of foreign exchange transactions.
- CIt fully eliminates counterparty risk.
- DIt reduces credit risk with the counterparty, as compared to money market deals.
How the community answered
(24 responses)- A4% (1)
- B4% (1)
- C8% (2)
- D83% (20)
Community Discussion
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