A Number of Financial Instruments That Are Used in Domestic

question 43

True/False

A number of financial instruments that are used in domestic financial management have been modified for use in international financial management. Examples are foreign currency options and futures, interest rate and currency swaps, and letters of credit.

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Definitions:

Consuming Units

Entities, typically individuals or households, that use goods and services for personal needs or wants.

Households

The consuming units in an economy.

Factors Of Production

The inputs used in the creation of goods or services; traditionally includes land, labor, capital, and entrepreneurship.

Capital

Funds or financial assets leveraged by companies to fund their operations and grow their businesses.