If I Say That I Have "Bought and Sold" EUR/USD

question 390

Multiple Choice

If I say that I have "bought and sold" EUR/USD in an FX swap, what have I done?

• A) Bought EUR and sold USD spot, and sold EUR and bought USD forward
• B) Bought USD and sold EUR spot, and sold USD and bought EUR forward
• C) Synthetically taken a USD loan in exchange for making a EUR loan with the same counterparty
• D) Sold EUR/USD spot and bought back EUR/USD forward

Grasp the requirements and implications of Section 402A of the Restatement of the Law of Torts concerning product liability.

Identify the conditions under which sellers are in breach of implied warranties.

Understand the role of the Magnuson-Moss Warranty Act and its administering body.

Understand the legal recourse available when purchasing stolen goods.

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Definitions:

Inventory Cost Formula

The method used to determine the cost of goods available for sale or the cost of goods sold, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or Average Cost.

Prior Writedown

A reduction in the book value of an asset when its market value falls below its current book value, previously accounted for in financial statements.

Consigned Goods

Items given to a third party to sell on behalf of the owner, but the owner retains ownership until the goods are sold.