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When a Company Uses the Internal Foreign Exchange Hedging Technique

question 77

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When a company uses the internal foreign exchange hedging technique and changes the timing of a cash flow so it occurs earlier than the original agreed date,this is called:


Definitions:

Compounded Monthly

The process by which interest is calculated on both the principal and the accumulated interest on a monthly basis.

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, often at retirement.

Ordinary Annuity

An ordinary annuity consists of identical payments that are made at the conclusion of successive periods for a specified duration.

Deferred Annuity

An annuity contract that delays payments of income, installments or a lump sum until the investor elects to receive them.

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