Choose the berm thag desceibses the implicia spot eschange rake betw Temies b. P
ID: 376555 • Letter: C
Question
Choose the berm thag desceibses the implicia spot eschange rake betw Temies b. Purchasing pwer d. Swap 9. Choose the term that describes the price of one country's cureency expeessed in tom o another country's currency a. Future rame b. Exchange rate d. London Interbank offer rate 10. Atrader in Canada just agreed to trade Canadian dollars for US dollars based exchange rate. The trade is expected to settle tomomow. What term best describes this exchange? a- spot trade b. forward trade c. futures trade d. backward trade 1. Which of the following is the BEST description of the goal of the financial manager in a a. Maximize earnings per share b. Maximize market share c. Maximize the number of shareholders d. Maximize the wealth of the owners, (sharcholders) 12. The determination of what happens to net present value estimates when we ask what if questions (ie, multiple project variables are changed simultaneously) is called a. forecasting analysis b. scenario analysis c. sensitivity analysis d. simulation analysisExplanation / Answer
PLEASE FIND ANSWERS TO FIRST 4 QUESTIONS :
Current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities. Potential creditors use the current ratio to measure a company's liquidity or ability to pay off short-term debts. Accounts payable falls under Current liabilities and thus cash payment of accounts payable reduces current liability and increases Current Ratio
ANSWER: C) CASH PAYMENT OF AN ACCOUNT PAYABLE
The cross rate is the exchange rate between currency A and currency C derived from actual exchange rate between currency A and currency B and between currency B and currency C.
Sometimes cross rate is referred to an exchange rate between two currencies not involving the US dollar.
Currency vendor provides quotes for only the most liquid currencies such as the US dollar, Euro, Pound Sterling, Swiss Franc, etc. Exchange rates between other currencies is normally calculated as the cross rates using the quotes for major currencies.
Formula
A
=
A
×
B
C
B
C
Where,
A/C = units of currency A per unit of currency C
A/B = units of currency A per unit of currency B
B/C = units of currency B per unit of currency C
ANSWER : a ) CROSS RATE
an exchange rate is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in relation to another currency.
ANSWER : b) EXCHANGE RATE
A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The exchange rate at which the transaction is done is called the spot exchange rate. Here the agreed price for settlement is on spot date . Hence the correct answer would be “Spot Trade”
ANSWER : a) SPOT TRADE
ANSWER: C) CASH PAYMENT OF AN ACCOUNT PAYABLE