The Forward Exchange Rate Quoted for the Remaining Term of a Forward

question 35

Multiple Choice

The forward exchange rate quoted for the remaining term of a forward contract is used to account for the contract when the forward contract:

• A) extends beyond one year or the current operating cycle.
• B) is a hedge of an identifiable foreign currency commitment.
• C) is a hedge of an exposed net liability position.
• D) was acquired to speculate in foreign currency.

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Definitions:

Cuba

An island nation in the Caribbean characterized by its significant role in Cold War politics, its socialist government, and rich cultural heritage.

Unauthorized Military

Military or paramilitary operations conducted without official approval or recognition.

Peaceful Relations

The state or condition of being free from conflict or dispute between countries, groups, or individuals, often achieved through diplomacy and mutual agreements.

Human Rights

The universal rights and freedoms to which all humans are inherently entitled, such as the rights to life, liberty, equality, and dignity, protected by international law.