A Draft,an Instrument Normally Used in International Commerce to Effect

question 57

True/False

A draft,an instrument normally used in international commerce to effect payment,is also known as a letter of credit.

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Definitions:

Swiss Francs

The legal currency of Switzerland, known for its stability and used as a benchmark or safe-haven currency in international finance.

Canadian Dollar

The Canadian Dollar is the official currency of Canada, symbolized by $ or C$ to distinguish it from other dollar-denominated currencies.

Foreign Exchange Rate Risk

The potential for investors to experience losses due to changes in the exchange rates between currencies.

Spot Rate

The current market price at which a particular asset can be bought or sold for immediate delivery.