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 2
Gelato ice cream maker shows the following on its balance sheet: revenue 200M, wages 100M, milk expenses 50M, strawberry purchases 5M, and taxes 25M. What is Gelato's contribution to GDP using the income approach?
A) 100M
B) 125M
C) 145M
D) 200M
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