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

2 months 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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Dalene

3 days ago

D) Interest payment amounts are netted.

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Wilburn

4 days ago

C) Nominal amounts are exchanged.

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Shantay

7 days ago

B) Interest based on the nominal currency amount is exchanged.

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Isadora

8 days ago

A) Nominal amounts are not exchanged.

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Jesse

10 days ago

Cross-currency swaps are all about swapping interest payments while keeping the nominal amounts separate.

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Sunny

16 days ago

Make sure to double check the terms and conditions of the swap before entering into any agreements.

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Darci

18 days ago

Cross-currency swaps can be a useful tool for managing currency risk in international transactions.

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Agustin

19 days ago

It's important to understand how the interest payments and nominal amounts are handled in these swaps.

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Mozell

20 days ago

That's right, the nominal amounts are not exchanged but interest payments are netted.

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Nobuko

23 days ago

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

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Dwight

2 months ago

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

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Sabine

2 months 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

2 months ago

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

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Tasia

2 months 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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Nancey

1 months ago

C) Nominal amounts are exchanged.

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Cheryl

2 months ago

A) Nominal amounts are not exchanged.

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Glennis

2 months ago

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

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Lanie

2 months 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

2 months 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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