Question

What is the hybrid nature of a Swap Transaction?

a.

It combines features of Spot and Forward transactions

b.

It combines features of Spot and Swap transactions

c.

It combines features of Forward and Swap transactions

d.

It combines features of all three types of transactions

Posted under IC 89 Management Accounting

Answer: (a).It combines features of Spot and Forward transactions Explanation:A Swap Transaction is a hybrid of Spot and Forward transactions in different directions, requiring parties to exchange currencies for a fixed period and reverse the transaction in the future.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the hybrid nature of a Swap Transaction?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What are the two types of Swap Transactions?

i. Spot-Forward transaction
ii. Forward-Forward transaction
iii. Spot-Swap transaction
iv. Swap-Swap transaction

View solution

Q. What percentage of transactions in the foreign exchange market are Swap Transactions according to the recent study?

View solution

Q. What is an Exchange Rate Quotation in the context of the Foreign Exchange Market?

View solution

Q. What is a Direct Quotation in the context of Exchange Rate?

View solution

Q. What is the main characteristic of a Direct Quote?

View solution

Q. What is an Indirect Quotation in the context of Exchange Rate?

View solution

Q. How are Direct and Indirect Quotes related to each other?

View solution

Q. What is the Bid in the context of Foreign Exchange Quotes?

View solution

Q. What is the Offer (Ask) in the context of Foreign Exchange Quotes?

View solution

Q. What is the Spread in the context of Foreign Exchange Quotes?

View solution

Q. Why is the offer always higher than the bid in Foreign Exchange?

View solution

Q. How is Spread% calculated in Foreign Exchange?

View solution

Q. What is the concept of Cross Rates in Foreign Exchange?

View solution

Q. When is an exchange rate considered a Cross Rate?

View solution

Q. What is the purpose of Exchange Rate Forecasting for business entities?

View solution

Q. Which technique of Exchange Rate Forecasting uses historical data and Time series Models?

View solution

Q. What is the basis of Fundamental Forecasting in Exchange Rate Forecasting?

View solution

Q. What are the limitations of Fundamental Forecasting?

View solution

Q. On what does Exchange Rate Determination depend?

View solution

Q. How does the interest rate affect the exchange rate of a currency?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

IC 89 Management Accounting

Boost your preparation for the IC 89 Management Accounting exam with our extensive...

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

Sociology

Gain insights into human behavior and society with our Sociology category. Explore...

Railway Engineering

Embark on a journey through the world of railway systems with our Railway Engineering...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Virology

Explore the captivating world of Virology with our specialized category. Dive into...