Table 11.3.Key Currency Cross Rates

question 165

Multiple Choice

Table 11.3.Key Currency Cross Rates

-Referring to Table 11.3,the cross exchange rate between the euro and Swiss franc is approximately:

• A) .68 euros per franc
• B) .68 francs per euro
• C) .64 euros per franc
• D) .64 francs per euro

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Definitions:

Equity Instrument

Any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Derivative Instrument

A financial contract whose value is derived from the value of an underlying asset, index, or rate.

Liabilities

Financial obligations of a business, including money owed to creditors or suppliers.

Financial Instrument

Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.