A(n)________ Is a Right to Exchange a Specific Amount of a Currency

question 109

Multiple Choice

A(n) ________ is a right to exchange a specific amount of a currency on a specific date at a specific rate.

• A) forward contract
• B) currency option
• C) currency hedging
• D) interest arbitrage

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Definitions:

Cash Dividend

A payout to shareholders from a company's earnings in the form of cash.

Comparative Balance Sheet

A financial statement presenting the assets, liabilities, and equity of an entity at two or more points in time to facilitate comparative analysis.

Direct Method

An approach to preparing the cash flow statement where actual cash flow information from the company's operations is used directly.

Prepaid Expense

Expenditures paid for in advance for goods or services to be received in the future, often including insurance premiums or rent.