Which of the following is true?
A. Principals are not usually exchanged in a currency swap
B. The principal amounts usually flow in the opposite direction to interest payments at the beginning of a currency swap and in the same direction as interest payments at the end of the swap.
C. The principal amounts usually flow in the same direction as interest payments at the beginning of a currency swap and in the opposite direction to interest payments at the end of the swap.
D. Principals are not usually specified in a currency swap
B
The correct answer is B. There are two principals in a currency swap, one for each currency. They flow in the opposite direction to the corresponding interest payments at the beginning of the life of the swap and in the same direction as the corresponding interest payments at the end of the life of the swap.
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Edgar Winter is a sales agent for Magnum Enterprises. Winter has assumed an obligation to indemnify Magnum if any of Winter's customers fail to pay. Under these circumstances, which of the following is true?
A. Winter's engagement must be in writing regardless of its duration. B. Upon default, Magnum must first proceed against the delinquent purchaser-debtor. C. The above facts describe a del credere agency relationship, and Winter will be liable in the event his customers fail to pay Magnum. D. There is no fiduciary relationship on either Winter's or Magnum's part.
The term surplus is associated with ? constraints
Indicate whether the statement is true or false