Chapter 9 Virtual Tutorial

Question Exchanging dollars for euros to pay a computer manufacturer in Belgium would occur Answer at the European Central Bank. at the Federal Reserve. in the letter of credit market. in the foreign exchange market.

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‏The Oman customer paid cash to Unites States of America is suitable to Select one : a Foreign investment b . Foreign currency translation c . Inflation accounting d Fluctuation risk

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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

This is Accounting MCQ i want answer and explanation why it's correct and another incorrect Thanks waiting for answer

__________________________________ is a negotiable CD for a U.S. dollar deposit at a bank located outside the United States or in U.S. International Banking Facilities. Select one: A. Repurchase Agreements B. Eurodollar CD C. Foreign Deposits D. Treasury Bill

Title: Identification Things to do: 1. A second function of the foreign exchange market is to provide exchange possibility that unpredicted changes future exchange rates adverse consequences for the firm. insurance against risk, which is the in will have exchange rate is the rate foreign exchange dealer 2. The at which a converts currency into another one currency on a particular day. 3. The value of a is determined by the interaction between the demand and supply of that currency relative to the demand and supply of other currencies. 4. A parties agree exchange occurs to exchange currency when two and execute the deal at some specific date in the future. 5. rates governing such future transactions are referred to as forward exchange rates. 6. Changes in be problematic for an business. exchange rates can international 7. A is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates. 8. When a firm enters into a it is taking out possibility…

Assume a Japanese company, Ascent Robotics, sells its equipment to a U.S. client invoicing half of the bill in yen and the remaining half in U.S. dollars. Which type of hedging through invoice currency does this situation represent?  Shifting exchange exposure Money market hedge Sharing exchange exposure Diversifying exchange exposure

d. Discuss whether Galina Works should avoid exchange rate risk by invoicing foreign customers in dollars.  e. Explain to Galina Works how, in respect of foreign sales, discounting and factoring can be used as hedging tools to manage foreign currency risk.

4 - At what rate is the valuation of demand deposit accounts in foreign currency in the bank account?A) Nominal valueB) Foreign exchange selling rateC) Exchange rateD) With effective purchase rateE) With comparable value

18 - What is the journal entry to be made if the policies sent by the exporter are accepted by the importer in the form of payment with acceptance credit?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 601 01 FOREIGN GOODS SALES XX B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 601 01 FOREIGN GOODS SALES XX C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 121 02 RECEIVABLES-FC XX D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 120 02 FOREIGN BUYER XXE) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 BANK X DTH XX 121 02 RECEIVABLES-FC XX

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Q2-5 In the monetary approach to the balance of payments (under flexible exchange rates) an increase in the proportion of income that people in country A wish to hold as money would, other things equal, lead to _______ in country A's demand for money and to ______ of A's currency in the foreign exchange markets.   a. an increase / a depreciation b. an increase / an appreciation c. a decrease / a depreciation d. a decrease / an appreciation

18 - In the form of payment with acceptance credit, which is the journal entry to be made if the policies sent by the exporter are accepted by the importer?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 601 01 FOREIGN GOODS SALES XX B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 601 01 FOREIGN GOODS SALES XX C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 121 02 RECEIVABLES-FC XX D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 120 02 FOREIGN BUYER XXE) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 BANK X DTH XX 121 02 RECEIVABLES-FC XX

Exchanging dollars for euros to pay a computer manufacturer in Belgium would occur (A) at the European Central Bank. (B) at the Federal Reserve. (C) in the letter of credit market. (D) in the foreign exchange market.

The questions about Risks when investing in another country

The exchange loss/gain due to a transaction exposure is estimated while O a. Converting a foreign currency into a domestic currency O b. Quoting a price for a foreign currency transaction O c. Entering into a transaction in foreign exchange O d. Verifying the fluctuation in the exchange rate

Question Anticipated cash inflows may fall in value if unexpected movements in the exchange rate hurt your ability to convert the foreign currency into domestic currency. This reduction in the conversion of future payments is called . A. translation exposure B. transaction exposure C.         conversion exposure D.        operating exposure

Read and T for True and F for False of the following phrases:     The problems of foreign currency transactions lie in cash handling   *True       *False

L A Moving to another question will save this response. Question 1 Which of the following statements is (are) true? (i) Bank certificates of deposits are capital market instruments. (ii) A dollar-denominated deposit at a Chinese bank located in Japan is called Eurodollar. (iii) An overnight repurchase agreement is similar to an overnight collateralized loan. O (i) and (iii) only (ii) and (iii) only (i) and (ii) and (iii) O (i) and (ii) only A Moving to another question will save this response.