_____ Is Defined as the Conversion of One Currency into Another

question 70

Multiple Choice

_____ is defined as the conversion of one currency into another at Time 1,with an agreement to revert it back to the original currency at a specific Time 2 in the future.

• A) Currency swap 
• B) Currency hedging 
• C) Spot transaction 
• D) Forward transaction

---

Definitions:

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio or a company's product line to minimize risks.

Alternative Accounting Policies

Different methods that an organization can use for reporting similar transactions or economic events in financial statements, based on accepted accounting principles.

Discontinued Operations

Components of a business that have been sold or otherwise disposed of, or will be disposing of, which are reported separately in financial statements.

Major Geographical Area

A significant region or territory within which a company operates and reports financial performance.