The Process by Which One Currency Is Changed into Another

question 48

Multiple Choice

The process by which one currency is changed into another is known as

• A) translation.
• B) conversion.
• C) restatement.
• D) mark-to-market.

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Definitions:

Bearer Bonds

A type of fixed-income security that is owned by the holder or bearer, instead of being registered to a specific owner.

Sinking Fund Bonds

Bonds that include a provision for the issuer to create a fund for repaying the bond principal at or before maturity.

Term Bonds

Bonds that have a specific maturity date on which the principal is due to be paid to bondholders.

Trust Indenture

A trust indenture is a legal agreement in a bond contract that outlines the responsibilities of the bond issuer and the rights of the bondholders.