If the exchange rates have risen, the value of the (forward) checks and debt securities will increase. To which account is this increase in value recorded? A) 656. Foreign Exchange Losses account B) 100. Cash account C) 646. Foreign Exchange Profits account D) 950. Currencies in the Safe Deposit Account E) 612. Other Discounts account

If the exchange rates have risen, the value of the (forward) checks and debt securities will increase. To which account is this increase in value recorded? A) 656. Foreign Exchange Losses account B) 100. Cash account C) 646. Foreign Exchange Profits account D) 950. Currencies in the Safe Deposit Account E) 612. Other Discounts account

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter19: Multinational Financial Management

Section: Chapter Questions

Problem 6P

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Match each term in Column A with its related definition in Column B. Column A 1. ____________ Spot rate 2. ____________ Currency appreciation 3. ____________ Translation risk 4. ____________ Transaction risk 5. ____________ Exchange rate Column B a. The rate at which one currency can be traded for another currency. b. The possibility that future cash transactions will be affected by changing exchange rates. c. A month ago, 1 U.S. was worth 8.5 Mexican pesos. Today, 1 is worth 9.0 Mexican pesos. The U.S. dollar has undergone what? d. The degree to which a firms financial statements are exposed to exchange rate fluctuation. e. The exchange rate of one currency for another for immediate delivery (today).
23 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 100 01 TL CASE XXX 100 02 DOLLAR CASE XXX 646 01 EXCHANGE PROFIT XX Which transaction belongs to the accounting record made?A) Foreign currency has been sold with negative exchange rate difference.B) The bank received foreign currency from DTH.C) Year-end appraisal has been made to the FX in the vault.D) Foreign currency was bought with a positive exchange rate difference.E) Foreign currency has been sold with a positive exchange rate.
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
A6 If a bank sells ₺10 million of bonds to the Fed to pay back ₺10 million on the loan it owes, what is the effect on the level of checkable deposits?
4) Brief, Inc., had a receivable from a foreign customer that is payable in the customer’s local currency. On December 31, 2020, Brief correctly included this receivable for 200,000 local currency units (LCU) in its balance sheet at $110,000. When Brief collected the receivable on February 15, 2021, the U.S. dollar equivalent was $120,000. In Brief’s 2021 consolidated income statement, how much should it report as a foreign exchange gain? a) $–0– b)$10,000 c) $15,000 d) $25,000
18-The OMR rate per US Dollar is quoted as OMR 2.4500 - OMR 2.5000 = $1. Company A wants to buy dollars in exchange for OMR. What rate will the bank offer company A? a. Bank offer OMR 2.5000/$ b. None of the options c. Bank offer OMR 2.5500% d. Bank offer OMR 2.4500/
23 - Our business, 27.06.202. On the date of purchase, $14,000 was exchanged at the exchange rate of $1 = 6.95. Which of the following calculations is correct in this situation? a) 646 Exchange Profits Hs. 97,300 TL (Creditor) B) 646 Exchange Profits Hs. 4.900 TL (Borrower) NS) 646 Exchange Profits Hs. 4.900 TL (Creditor) D) 656 Foreign Exchange Losses Hs. 4.900 TL (Creditor) TO) 656 Foreign Exchange Losses Hs. 4.900 TL (Borrower)
On July 1, 2020, Mifflin Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2021. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows: LO 9-2 LO 9-2 LO 9-2 LO 9-2, 9-3 Problems 1. Which of the following combinations correctly describes the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses? LO 9-1 Type of Transaction Foreign Currency Foreign Exchange Gain or Loss a. Export sale Appreciates Loss b. Import purchase Appreciates Gain c. Import purchase Depreciates Gain d. Export sale Depreciates Gain Date Amount July 1, 2020 (date borrowed). . . . . . . . . . . . . . . . . . . . . . . . . $225,000 December 31, 2020 (Mifflin’s year-end). . . . . . . . . . . . . . . . 220,000 July 1, 2021 (date repaid). . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,000 In its 2021 income statement, what amount should Mifflin include as a…
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(C). A balance sheet for a hypothetical central bank is shown below: Central Bank Balance Sheet in photo Write the new balance sheet if the bank sells $100 worth of foreign bonds for domestic currency.
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1 A bank in London, Ontario has a buying rate of CHF 1 = C$1.3491. If the exchange rate is CHF 1 = C$1.3785, calculate the rate of commission that the bank charges. 2 Jonathan found US$130 in his attic and sold it to a bank that charged him a commission of 0.35%. How much did he receive from the bank? Assume that the exchange rate was C$1 = US$0.75.