A Forward Contract on Currency

question 31

Multiple Choice

A forward contract on currency

• A)is a way to hedge credit (default)risk.
• B)is used to swap fixed interest payments in one currency for variable interest payments in another currency.
• C)is an agreement between a customer and a bank to exchange one currency for another on a specified date at a specified exchange rate.
• D)is an agreement between a customer and a bank to exchange one currency for another on a specified date at whatever the exchange rate is on that day.

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Definitions:

Prescriptive Approach

A method in therapy and problem-solving that involves specific recommendations and strategies tailored to the individual's unique issues and needs.

Less Directive

An approach or style that involves giving less guidance and allowing individuals more freedom to figure out solutions or actions on their own.

Rapport-Focused

Emphasizing the importance of building a trusting and understanding relationship between the therapist and client in therapy.

Problem Orientation

A mindset focused on identifying, analyzing, and finding solutions for difficulties and challenges.