Examples of a Business Motivation for Long-Run Exchange Rate Forecasts

question 26

Multiple Choice

Examples of a business motivation for long-run exchange rate forecasts include all but which of the following?

• A) a major capital investment in a foreign country
• B) the desire to hedge a 90-day security
• C) a portfolio manager considering investing in foreign securities
• D) All of the above are examples of a business motivation for long-run exchange rate forecast.

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Definitions:

Unearned Fees

Income received by a business for which the services have not yet been performed or delivered.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjusting entries have been made.

Supplies Expense

Costs incurred for supplies used in the operations of a business.

Adjustment Data

Information used to make changes to accounts for the purposes of accurate financial reporting, such as accruals or deferrals.