Consider a U. S. commercial bank that takes in one-year certificates of deposit(CDs) in its Japan branch, denominated in Japanese yen, to fund three-year, fixed-rate loans the bank is making in the U. S. denominated in U. S. dollars. Why would this bank wish to enter into a currency swap The bank faces the risk that the Japanese yen: ()
A. increases in value against the U. S. dollar and the risk that interest rates decrease in Japan.
B. decreases in value against the U. S. dollar and the risk that interest rates increase in Japan.
C. increases in value against the U. S. dollar and the risk that interest rates increase in Japan.
