Define Spot, Forward, and Swap Transactions in the Foreign Exchange

question 14

Essay

Define spot, forward, and swap transactions in the foreign exchange market and give an example of how each could be used.

---

Definitions:

Noncontrolling Interest

A portion of equity in a subsidiary not owned by the parent company, reflecting the minority shareholders' ownership in the subsidiary's net assets and income.

Consolidated Statement

Financial statements that aggregate the financial position and operations of a parent company and its subsidiaries, presenting them as a single economic entity.

Cash Flows

The aggregate monetary transactions entering and leaving a corporation, chiefly influencing its cash flow.

Consolidated Cost Of Goods Sold

The total cost of goods sold by a combined entity, including all subsidiaries, after eliminating intercompany transactions.