Which of the Following Refers to Countertrade

question 69

Multiple Choice

Which of the following refers to countertrade?

• A)A short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates
• B)The exchange rate at which a foreign exchange dealer will convert one currency into another that particular day
• C)Simultaneous purchase and sale of a given amount of foreign exchange for two different value dates
• D)The purchase of securities in one market for immediate resale in another to profit from a price discrepancy
• E)A range of barter-like agreements by which goods and services can be exchanged for other goods and services

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Bond

A bond is a fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Rule Of 70

The Rule of 70 is a calculation method used to estimate the number of years required for an investment or the economy's GDP to double, based on a constant annual growth rate.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a set period.