Answered: Rate at which a foreign exchange dealer…

Rate at which a foreign exchange dealer converts one currency into another currency on a particular day with maximum settlement of 2 days. a. forward rate b. future forwards rate c. spot rate

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter12: Managing Economic Exposure And Translation Exposure

Section: Chapter Questions

Problem 3IEE

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Question

1. Rate at which a foreign exchange dealer converts one currency into another currency on a particular day with maximum settlement of 2 days.

a. forward rate

b. future forwards rate

c. spot rate

2. Risk of losing a market due to forex change.

a. economic risk

b. market risk

c. transaction risk

3. Which of the following is NOT true about private placement?

a. A private placement need to be registered with SEC

b. Pension funds, insurance companies are the usual investors of portfolio issued under private placement

c. The company still need to disclose financial data to convince investors

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