Question 1
In which of the following transactions is a currency switched with another on one date and then switched back on a future date?
◦ outright forward transaction
◦ FX swap
◦ spot transaction
◦ reverse transaction
Question 2
A foreign-exchange contract that is an agreement between two parties to buy or sell a particular currency at a particular price at a particular date as specified in a standardized contract to all participants in the specified market is known as a(n) ________.
◦ equity currency contract
◦ futures contract
◦ forward contract
◦ spot contract