Which of the Following Is True of Forward and Spot

question 25

Multiple Choice

Which of the following is true of forward and spot rates?

• A) The premium or discount is usually 7-10%.
• B) Spot and forward transactions generally occur on the organized exchange.
• C) The length of a forward and spot contract is generally between zero and six months.
• D) Both the forward and spot rate occur in the over-the-counter market.

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Definitions:

Trial Balance

A report listing all accounts and their balances at a specific time, verifying that total debits equal total credits.

Journal Entry

A record of a business transaction in an accounting ledger that includes the accounts and amounts to be debited and credited.

Account Number

A unique identifier assigned to an account that enables transactions and tracking.