Choose the Statement Which Is Most INCORRECT

question 118

Multiple Choice

Choose the statement which is most INCORRECT. Cheques received through the mail should

• A) immediately be endorsed "For Deposit Only."
• B) be verified against the customer's bank balance. A clerk should call the customer's bank to ensure that the customer has sufficient funds to cover the cheque.
• C) be deposited at the bank as soon as possible.
• D) be "rung up" on a cash register immediately.

---

Definitions:

Forward Contract

An agreement to buy or sell an asset at a future date at a price agreed upon today, often used to hedge against price movements.

Spot Rates

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

Fair Value Hedge

A type of hedge that protects against changes in the fair value of an asset, liability, or an unrecognized firm commitment, often due to changes in interest rates or other market variables.

Forward Contract

A financial derivative that represents a customized agreement to buy or sell an asset at a predetermined future date and price.