A Non-Cancelable Order of a Product That Specifies the Foreign

question 45

Multiple Choice

A non-cancelable order of a product that specifies the foreign currency price and date of delivery is called a:

• A)hedge.
• B)derivative.
• C)foreign currency firm commitment.
• D)international transaction.

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Definitions:

Phase Current

The electric current flowing through one phase of a multi-phase system, like in three-phase electrical systems.

Resistive Load

A type of electrical load in which the current flowing through it is directly proportional to the voltage across it, in accordance with Ohm's law.

Turns Ratio

The proportion between the turns in the primary coil compared to the turns in the secondary coil of a transformer.

Load Resistor

A resistor used in a circuit primarily to replicate the load that a transducer or other device would exert on the circuit.