Which of the Following Describes the Way the Forward Price

question 13

Multiple Choice

Which of the following describes the way the forward price of a foreign currency is quoted?

• A) The number of U.S. dollars per unit of the foreign currency
• B) The number of the foreign currency per U.S. dollar
• C) Some forward prices are always quoted as the number of U.S. dollars per unit of the foreign currency and some are always quoted the other way round
• D) There are no quotation conventions for forward prices

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Definitions:

FICA Tax Rate

The combined percentages for Social Security and Medicare taxes that employers and employees must pay based on wages or salaries.

Federal Income Taxes

Levies placed on the yearly income of persons, companies, trusts, and various legal bodies by the federal government.

Federal Unemployment Compensation Tax

A federal tax imposed on employers to fund state workforce agencies and unemployment insurance.

Payrolls Tax

Payrolls Tax is a tax imposed on employers based on the salary and wages paid to employees, which can encompass federal, state, and local taxes.