Which one of the following is not true regarding a currency board? Currency board holds international reserve assets. Currency in circulation is a liability in the balance sheet of the currency board. Currency board is a way of implementing a floating exchange rate regime.
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- (TCO F) What is the rationale for the remeasurement of foreign currency transactions?Under the fixed exchange rate system, what was the currency against whichall other currency values were defined? Why?What is a currency board? Describe the strict rules about the composition of reserves and domestic credit that apply to this type of monetary arrangement.
- Explain what a currency instrument is? Give examples of such currency instrumentWhat concept underlies the two-transaction perspective in accounting for foreign currency transactions?which shall be recognized for each item when foreign currency gain or loss that arises from translation of foreign currency denominated transaction to functional currency? a. inventiry b. interest expense c. accounts receivable d. unearned revenue
- Discuss well about the exchange Rate Mechanisms of currencies; what does it mean “Independent Float” or “Pegged to another currency” mean? Give example for each.What are some of the transactions or activities that results in the demand of foreign currency?Exchange rate is:Select one:a. All of the given answers.b. The rate at which one currency can be exchanged for another.c. Not defined in AASB 121.d. The difference between the currency rates.
- Explain the foreign currency swaps and why are they undertaken? Explain the functional currency and what is a presentation currency.Which of the following is NOT a characteristics of Eurobonds? a. They are traded on a self-regulated market. O b. They are issued in bearer form. c. They are untaxed. d. They are underwritten by syndicates of banks. e. They can only be denominated in EUR.What is meant by spot rate in case of foreign currency transaction?