A Teller's Check

question 30

Multiple Choice

A teller's check:

• A)is a draft drawn by a bank on any other financial institutions other than a bank.
• B)is a check drawn by a bank on an individual's funds.
• C)is a draft on which the drawer or drawee are the same bank.
• D)is a draft drawn by a bank on another bank or payable at or through a bank.

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Definitions:

Forward Contract

A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today, not traded on an exchange.

Exchange Gain

A profit resulting from foreign currency transactions when the value of the currency received is higher than the value of the currency exchanged at the transaction rate.

Spot Rate

The current market price for immediate settlement of a currency exchange, commodity, or security.

Singapore Dollars (SGD)

The official currency of Singapore, represented by the symbol S$.