Which one of the four following statements regarding foreign exchange (FX) swap transactions is INCORRECT?

Which one of the four following statements regarding foreign exchange (FX) swap transactions is INCORRECT?
A . FX swap is a common short-term transaction.
B . FX swap is normally used for hedging various currency positions.
C . FX swap generates more exchange rate risk than simple forward transactions.
D . FX swap is generally used to for funding foreign currency balances and currency speculation.

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Answer: C