The swaps that are classified as long term contracts are ___________?
Correct answer: A. currency swaps
- A. currency swaps
- B. notion swaps
- C. floating swaps
- D. fixed swaps
Explanation
Currency swaps are generally long-term agreements in which parties exchange cash flows denominated in different currencies. The other choices are not standard broad classifications of long-term swaps.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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