By 2007,forward Instruments Accounted for 85 Percent of All Foreign

question 62

True/False

By 2007,forward instruments accounted for 85 percent of all foreign exchange transactions,while spot exchanges accounted for 15 percent.

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Definitions:

Compounded Quarterly

The process of calculating interest on both the initial principal and accrued interest from previous periods on a quarterly basis.

Present Value

The present value of a future amount of money or series of cash inflows, based on a certain rate of return.

Quarterly Payments

Payments that are made four times a year, typically related to dividends, loans, or lease agreements.

Amortization Schedule

A schedule of payments; the schedule shows the amount of interest and the amount of principal in each payment.