Assume That a Firm Purchases Foreign Currency in Order to Complete

question 102

Multiple Choice

Assume that a firm purchases foreign currency in order to complete the purchase of raw material from an overseas supplier. The currency is purchased today at an exchange rate that is good only for today. This transaction is referred to as a(n) ________ transaction.

• A) forward
• B) arbitrage
• C) spot
• D) hedge

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Definitions:

Coagulant

A substance that causes blood or another liquid to clot, often used in medical treatments to control bleeding.

Local Anesthesia

is a type of anesthesia used to numb a specific area of the body, preventing pain during surgical procedures without affecting consciousness.

Clinical Medical Assistant

A healthcare professional who works under the supervision of a physician to provide patient care, perform clinical tasks, and manage office functions.

Bandage

A strip of material used to support, protect, or compress a wound or injured part of the body.