Which of the Above Transaction(s) Are Examples of Operating Activities

question 12

Multiple Choice

Which of the above transaction(s) are examples of operating activities?

• A)2,3,5
• B)5,6,8
• C)2,3,5,6,8
• D)2,5,6

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Definitions:

Exchange Rate

The price of one country's currency in terms of another's, used in international trade and investment.

Spot Rate

The current market price at which a particular asset can be bought or sold for immediate delivery and payment.

Covered Interest Arbitrage

A strategy in which an investor uses a forward contract to hedge against exchange rate risk when investing in foreign interest-bearing instruments.

Nominal Risk-Free Rate

The rate of return on the safest investments, such as government bonds, without adjusting for inflation.