Which of the Following Statements About Forward Exchange Rates Is

question 28

Multiple Choice

Which of the following statements about forward exchange rates is false?

• A) they reduce uncertainty about future value of currencies
• B) they reflect expectations about the future value of currencies
• C) they are usually slightly lower than the spot rate
• D) all of the other answers are true

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Definitions:

Trial Balance

A bookkeeping report that lists the balances in each of an organization's general ledger accounts at a specific point in time.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure that total debits equal total credits.

Journal Entry

A record in the books of accounts that represents each business transaction, detailing the accounts and amounts to be debited and credited.

Debit

An entry recorded on the left side of an accounting ledger that increases an asset or expense account, or decreases equity, liability, or revenue accounts.