SAP Exam C_S4FTR_2021 Topic 6 Question 19 Discussion

Actual exam question for SAP's C_S4FTR_2021 exam

Question #: 19
Topic #: 6

[All C_S4FTR_2021 Questions]

You are testing cross-currency swaps.Which of the following are some of the characteristics of this product type?Note: There are 2 correct answers to this question.

ANominal amounts are not exchanged.

BInterest based on the nominal currency amount is exchanged.

CNominal amounts are exchanged.

DInterest payment amounts are netted.

Show Suggested Answer

Suggested Answer: A, C

by Rima at Apr 23, 2023, 11:04 AM

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Gennie

9 days ago

B and D, no doubt about it. Swapping interest payments while keeping the nominal amounts separate is the whole point of this financial instrument. Easy peasy, lemon squeezy!

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Dwight

4 days ago

I agree, B and D are the correct characteristics of cross-currency swaps.

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Sabine

12 days ago

Ah, the classic cross-currency swap question. It's like a linguistic dance of interest rates and nominal amounts. Better brush up on my financial choreography!

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Salley

20 days ago

I'm not sure about this one. Can someone explain why A and D are the correct answers?

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Tasia

21 days ago

Haha, this question is a real head-scratcher! I'm just going to guess randomly and hope for the best. Who needs logic when you've got luck on your side?

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Cheryl

4 days ago

A) Nominal amounts are not exchanged.

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Glennis

22 days ago

I agree with Harris. Nominal amounts are not exchanged and interest payment amounts are netted.

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Lanie

22 days ago

I'm pretty sure C is correct - the whole point of a cross-currency swap is to exchange the nominal amounts, isn't it? Otherwise, how would you swap the currencies?

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Kasandra

26 days ago

B and D seem like the correct answers here. The defining feature of a cross-currency swap is that the nominal amounts are not exchanged, but the interest payments are.

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Harris

1 months ago

I think the correct answers are A and D.

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