Which of the Following Statements Is Correct

question 37

Multiple Choice

Which of the following statements is correct?

• A) The historical rate is the exchange rate on the date of the transaction and the closing rate is the exchange rate at the end of the reporting period.
• B) The historical rate is the exchange rate on the date of the transaction and the closing rate is the rate on which any hedge transactions mature.
• C) The spot rate is the rate on the date of the transaction and the relevant forward rate is the exchange rate used at the end of the reporting period.
• D)None of the above are correct.

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Definitions:

Incidental Beneficiary

A third party for whose benefit a contract was not made but who would substantially benefit if the agreement were performed according to its terms and conditions.

Enforceable Legal Rights

are rights granted by the law that can be brought before a court for protection or enforcement.

Donee Beneficiary

A third-party beneficiary for whom a contract is intentionally made to benefit as a gift.

Constructive Breach

A type of breach of contract where one party indirectly fails to perform their obligations, thereby allowing the other party to treat the contract as broken.