Multiple Choice
A forward rate agreement helps the user to
A) Fix the cost of borrowing.
B) Reduce the cost of borrowing.
C) Cover exchange risk
D) Avail tax benefit
Correct Answer:

Verified
Correct Answer:
Verified
Q15: Translation loss is<br>A)A loss to the parent
Q16: Translation exposure arises in respect of items
Q17: The acronym CIRCUS stands for<br>A)Current Interest Rate
Q18: The _ is especially well suited to
Q19: The true cost of hedging transaction exposure
Q20: This is not established method of translation<br>A)Current
Q21: Leading refers to<br>A)Advancing of receivables.<br>B)Advancing of payables.<br>C)Advancing
Q22: The swap arrangement where principal amounts are
Q23: Hedging with options is best recommended for<br>A)Hedging
Q25: Exposed assets are those translated at<br>A)Historical rate.<br>B)Average