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.

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