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      Question

      In a currency swap, the principal and interest payments

      are:
      A Exchanged only once Correct Answer Incorrect Answer
      B Exchanged in the same currency Correct Answer Incorrect Answer
      C Exchanged at maturity Correct Answer Incorrect Answer
      D Exchanged in different currencies periodically Correct Answer Incorrect Answer
      E Not exchanged at all Correct Answer Incorrect Answer

      Solution

      Currency swaps involve exchanging principal and interest in different currencies at agreed intervals.

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