The Most Important (In Terms of Dollar Value) Type of Foreign

question 48

Multiple Choice

The most important (in terms of dollar value) type of foreign exchange transaction by U.S.banks is the:

• A) Spot transaction
• B) Forward transaction
• C) Swap transaction
• D) Option transaction

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Definitions:

Operating Expenses

Operating expenses are costs associated with the day-to-day functions of a business, excluding direct production costs but including things like rent, utilities, and staff wages.

Sales Revenue

The total amount of money generated from selling goods or services before any expenses are deducted.

Gross Profit Rate

The ratio of gross profit to net sales, indicating the efficiency of a company in managing its production and labor costs.

Net Sales

The sales income left after subtracting returns, reductions for damaged or missing items, and price discounts.