The Greyon Bank in Australia Has an Excess Balance of Euros

Multiple Choice

The Greyon Bank in Australia has an excess balance of euros but is in need of dollars.Similarly,Huran Bank in the US has an excess of dollars and is currently in need of euros.The two banks agree to exchange euros for dollars now and dollars for euros at a later date.This type of foreign exchange transaction is an example of _____.

A) currency hedging
B) spot transaction
C) currency swap
D) forward transaction