Trader a Has Agreed to Give 100,000 U

question 48

Multiple Choice

Trader A has agreed to give 100,000 U.S.dollars to Trader B in exchange for British pounds based on today's exchange rate of $1 = £0.62.The traders agree to settle this trade within two business day.What is this exchange called?

• A)swap
• B)option trade
• C)futures trade
• D)forward trade
• E)spot trade

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Definitions:

Job-Order Costing

A costing system used to accumulate costs for individual jobs or orders, typically used when products or services are distinct and customized.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a selected activity base.

Automated Jointer

A machine tool used in woodworking that automatically creates a flat surface along the length of a board or piece of lumber.

Gross Margin

The difference between sales revenue and cost of goods sold, expressed as a percentage of sales revenue, indicating the financial health of sales.