What Has Occurred When One Company Arranges to Buy a Foreign

question 24

Multiple Choice

What has occurred when one company arranges to buy a foreign currency sometime in the future, at an exchange rate quoted today?

• A) The company has purchased a foreign currency option.
• B) The company has entered a forward contract.
• C) The currency has been devalued.
• D) None of the above

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Definitions:

Economic Equality

A principle aiming for balanced distribution of wealth and opportunities among all individuals in a society, reducing the gap between the rich and the poor.

Constitution

The fundamental principles and established precedents according to which a state or other organization is governed.

Amending

The process of making changes or additions to a document or statute, often requiring a specific procedure for legal and constitutional amendments.

Constitution

A collection of basic principles or set precedents that govern the operation of a state or any other organization.