For Which of the Following Reasons Is the Extension of Forward

question 190

Multiple Choice

For which of the following reasons is the extension of forward contracts at non-current rates is discouraged: i.These could be used to conceal profit or losses. ii.These could be used to perpetrate fraud. iii.These could result in an unauthorised extension of credit. iv.These could result in confusing settlement instructions.

• A) (i), (ii), (iii), & (iv).
• B) (i), (ii) & (iii).
• C) (i) & (iii).
• D) none of the above.

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Definitions:

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real volume of production.

Price Level

The overall price mean for each and every product and service in the economic sector.

Aggregate Supply Curve

A graphical representation showing the relationship between the overall price level in an economy and the total output produced by firms at that price level.

Aggregate Demand

Aggregate demand represents the total demand for all goods and services in an economy at a given overall price level and in a given time period.