The Percentage Per Year by Which the Forward Rate on the Foreign

question 9

Multiple Choice

The percentage per year by which the forward rate on the foreign currency is below its spot rate is the:

• A)forward increase
• B)forward discount
• C)forward transaction
• D)forward premium

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Definitions:

Adjusting Entry

A log entry prepared at the termination of an accounting interval to apportion profits and outlays to the timeframe in which they really happened.

Unearned Rent Revenue

Income received by a company for rent that has not yet been earned because the rental period has not occurred.

Office Space

Premises used by businesses to carry out their day-to-day activities and operations.

Interest-Bearing Note

A debt instrument that requires the borrower to pay not only the principal amount but also periodic interest payments.