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Agreements Between Firms and Banks Which Permit the Firm to Either

question 87

Short Answer

Agreements between firms and banks which permit the firm to either sell or buy a specific foreign currency at a future date at a known price are known as ________.


Definitions:

Installment Payment

A method of paying for goods or services over a period of time in regular, scheduled payments.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of the asset.

Call Price

The price at which an issuer can redeem a bond before its maturity date.

Interest Annually

The amount of interest earned or paid over a one-year period.

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