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A ________ transaction in the interbank market is the simultaneous purchase and sale of a given...

A ________ transaction in the interbank market is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates.

Select one:

A. spot

B. futures

C. forward-forward

D. swap

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Answer #1
Inter-bank forex market is electronic transfer of foreign currencies between banks
Under this Spot is converting one currency into another, the very same day, instantaneous
In Futures & forward trading , the parties concerned transact at today's value, some deal tp take place at an agreed date , in future.
Options A,B & C are not the answers.
So, the answer is
D. Swap--
FX swap which is simultaneous purchase and sale of a given amount of foreign exchange for two different value dates
ie.Simultaneous lending & borrowing of the equivalent amounts , in two different currencies
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