________ Are Exchange Rates Governing Some Specific Future Date Foreign

question 79

Multiple Choice

________ are exchange rates governing some specific future date foreign exchange transactions.

• A) Spot exchange rates
• B) Forward exchange rates
• C) Future exchange rates
• D) Currency swaps

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Definitions:

Market Rate of Return

The average rate of return anticipated by investors in the overall market for a particular investment category.

Collection Float

The time period between when a check is deposited and when it is cleared and the funds are available.

Outstanding Cheques

Checks that have been written and recorded in the issuer's financial statements but have not yet been cashed or cleared by the bank.

Outstanding Deposits

Funds that have been deposited but not yet credited to the depositor's account, often due to processing time.