Currency swap question - Schweser understand, receive, question, difficult, liability

hw0799

Hello,

Here is a Schweser question that is difficult to understand. Could someone please help to explain how to solve it:

The current US dollar to Canadian dollar exchange rate is 0.7. In a 1 million USD plain vanilla currency swap, the party that is entering the swap to hedge existing exposure to a C$-dominated fixed-rate liability will:
A. receive 1 million USD at the termination of the swap
B. pay a fixed rate based on the yield curve in the United States
C. receive a fixed rate based on the yield curve in Canada.

Thanks

Suny