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Management · Q26

International Finance and Treasury

Graduate and Post Graduate · Management · question 26

Q26

The acronym CIRCUS stands for

A.
Current Interest Rate Swap
B.
Circular Currency Swap
C.
Combined Income Range Currency Swap
D.
Combined Interest Rate and Currency Swap
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The acronym CIRCUS stands for Combined Interest Rate and Currency Swap. A Circus Swap is a common Forex transaction that's a combination of an interest rate swap and a currency swap in which a fixed-rate loan in one currency is swapped for a floating-rate loan in another currency.