Which of the Following Describes the Way the Forward Price

question 1

Multiple Choice

Which of the following describes the way the forward price of a foreign currency is quoted?

• A) The number of U.S. dollars per unit of the foreign currency
• B) The number of the foreign currency per U.S. dollar
• C) Some forward prices are quoted as the number of U.S. dollars per unit of the foreign currency and some are quoted the other way round
• D) There are no quotation conventions for forward prices

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Definitions:

Interest Calculations

The process of determining the amount of interest owed or earned over a specific period of time, based on the principal amount and the rate of interest.

Journalize

The act of recording a transaction in an accounting journal in the form of a journal entry, following the double-entry system.

Interest Calculations

The process of determining the interest payment on a loan or financial product based on the principal, rate, and period.

Journalize

The act of recording transactions in a company's journal, which includes details like the date, accounts affected, and amounts involved.