Question 1

Leading refers to

Accepted Answer

A) Advancing of receivables. 
B) Advancing of payables. 
C) Advancing payments either receivables or payables. 
D) Advancing of receivables and delaying of payables. 
A) Advancing of receivables. 
B) Advancing of payables. 
C) Advancing payments either receivables or payables. 
D) Advancing of receivables and delaying of payables.

Question 2

The swap arrangement where principal amounts are not exchanged, but periodical payments will be a

Accepted Answer

A) Currency swap 
B) Cross currency interest swap 
C) Interest rate swap. 
D) Non-Financial swap. 
A) Currency swap 
B) Cross currency interest swap 
C) Interest rate swap. 
D) Non-Financial swap.

Question 3

Hedging with options is best recommended for

Accepted Answer

A) Hedging receivables. 
B) Hedging payables. 
C) Hedging contingency exposures. 
D) Hedging foreign currency loans 
A) Hedging receivables. 
B) Hedging payables. 
C) Hedging contingency exposures. 
D) Hedging foreign currency loans

Question 4

A forward rate agreement helps the user to

Accepted Answer

A) Fix the cost of borrowing. 
B) Reduce the cost of borrowing. 
C) Cover exchange risk 
D) Avail tax benefit 
A) Fix the cost of borrowing. 
B) Reduce the cost of borrowing. 
C) Cover exchange risk 
D) Avail tax benefit

Question 5

Exposed assets are those translated at

Accepted Answer

A) Historical rate. 
B) Average rate. 
C) Current rate. 
D) Current rate or average rate. 
A) Historical rate. 
B) Average rate. 
C) Current rate. 
D) Current rate or average rate.

Leading refers to

The swap arrangement where principal amounts are not exchanged, but periodical payments will be a

Hedging with options is best recommended for

A forward rate agreement helps the user to

Exposed assets are those translated at

Foreign Currency Accounts, Exchange Rates, and Derivatives: Exploring the World of Foreign Exchange

International Trade and Finance Terminology and Concepts

Foreign Exchange and International Finance

Foreign Trade and Financial Considerations

Filters

Exam 2: Foreign Exchange and Hedging Exposures

Leading refers to

The swap arrangement where principal amounts are not exchanged, but periodical payments will be a

Hedging with options is best recommended for

A forward rate agreement helps the user to

Exposed assets are those translated at

Foreign Currency Accounts, Exchange Rates, and Derivatives: Exploring the World of Foreign Exchange

International Trade and Finance Terminology and Concepts

Foreign Exchange and International Finance

Foreign Trade and Financial Considerations

Filters