The Most Important (In Terms of Dollar Value) Type of Foreign

question 48

Multiple Choice

The most important (in terms of dollar value) type of foreign exchange transaction by U.S.banks is the:

• A) Spot transaction
• B) Forward transaction
• C) Swap transaction
• D) Option transaction

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Definitions:

Under IFRS

Refers to the accounting and reporting standards under the International Financial Reporting Standards framework, used globally.

Equity

The ownership interest held by shareholders in a corporation, represented by the residual assets of the company after deducting liabilities.

Shareholders' Funds

The total value of all a company's assets minus its liabilities, representing the equity ownership of shareholders.

Authorized

The formal approval or sanction for an action or the maximum amount of capital stock that a company can issue as authorized by its corporate charter.