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q1 Question 12 (12 marks) What is the difference between currency swaps and interest rate swaps? Explain briefly how banks engaged in swaps involving fixed

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Question 12 (12 marks) What is the difference between currency swaps and interest rate swaps? Explain briefly how banks engaged in swaps involving fixed interest rates make money out of such transactions. With the help of a diagram, explain how Australian banks use swaps to hedge out currency risk from their offshore borrowing. Explain your diagram

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