Was P&G's 1994 German mark swap an interest rate swap or a cross currency swap? Explain
What will be an ideal response?
The 1994 swap was an interest rate swap because all the cash flows were denominated in German marks. There was no exchange of principal at the initiation of the contract and no exchange of principal at the end.
Business
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The ________ motive for holding cash is the need to pay debts that arise as a regular consequence of doing business
A) Transactional B) Precautionary C) Speculative D) Intuitive
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