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When the Total Number of Decimal Places in the Multiplicand

question 73

Short Answer

When the total number of decimal places in the multiplicand and multiplier exceeds the number of numerals that appear in the product, _____ _______________ are added to the left of the digits in the product to complete the decimal places needed.


Definitions:

Spot Rate

The spot rate refers to the current exchange rate at which a currency can be bought or sold for immediate delivery.

Exchange Gain

A profit resulting from holding assets in a foreign currency as the exchange rate fluctuates.

Exchange Loss

A loss resulting from holding foreign currencies that depreciate against the home currency.

Forward Contract

An agreement to purchase or sell an asset at a predetermined future date and price, often used as a hedging instrument against price fluctuations.

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