Which of the Following Transactions Is Used to Move Out

question 48

Multiple Choice

Which of the following transactions is used to move out of one currency into another for a limited period without incurring foreign exchange risk?

• A) Currency swap
• B) Currency speculation
• C) Carry trade
• D) Spot exchange
• E) Arbitrage

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Definitions:

Statement Of Income

This financial document reports a company's financial performance over a specific period, showing revenues, expenses, and net income.

Classifying Expenses

The process of categorizing expenses in financial records to accurately represent the nature of each expenditure.

Administrative Expenses

Overheads and costs relating to the general operation of a business, including salaries of non-sales personnel, rent, and utilities.

Profit Margin

A financial metric used to evaluate a company's profitability by comparing net income to revenue.