The Following Are the Prices in the Foreign Exchange Market

question 94

Multiple Choice

The following are the prices in the foreign exchange market between the U.S. dollar and another local currency (LC) . What was the discount or premium on 3-month forward for LC?

• A) 0.643% premium
• B) .013% premium
• C) .013% discount
• D) 0.643% discount

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Definitions:

Service Risks

Refers to the potential for losses or negative outcomes that a business may experience when delivering services to customers.

HR Activities

Tasks and functions carried out by the Human Resources department, including recruiting, training, employee relations, and benefits management.

Outsourcing

The practice of hiring third parties to handle tasks traditionally performed within the company, often to save costs or access specialized expertise.

Payroll Administration

The process involved in managing the compensation of employees, including salary disbursement, tax withholding, and record-keeping.