Foreign exchange risk can be reduced by using _____. A. forward contracts B. futures contracts C. currency options D. currency denomination E. all of the above

Foreign exchange risk can be reduced by using _____.
A. forward contracts
B. futures contracts
C. currency options
D. currency denomination
E. all of the above
by

1 Answer

Answer :

E. all of the above
by

Related questions

Which of the following is not a basic objective of documentation in foreign trade? A. to assure that the exporter will receive the payment B. to assure that the importer will receive the goods C. to eliminate risk of noncompletion D. to reduce foreign exchange risk E. none of the above

Description : Which of the following is not a basic objective of documentation in foreign trade? A. to assure that the exporter will receive the payment B. to assure that the importer will receive the goods C. to eliminate risk of noncompletion D. to reduce foreign exchange risk E. none of the above

Last Answer : E. none of the above

______ risk is the potential exchange loss from outstanding obligations as a result of exchange-rate fluctuations. A. Trade B. Exchange C. Finance D. Noncompletion E. Transaction

Description : ______ risk is the potential exchange loss from outstanding obligations as a result of exchange-rate fluctuations. A. Trade B. Exchange C. Finance D. Noncompletion E. Transaction

Last Answer : E. Transaction

The “three C’s” of international commerce are: A. customers B. commitment C. currency D. cultural sensitivity E. A, B, and D

Description : The “three C’s” of international commerce are: A. customers B. commitment C. currency D. cultural sensitivity E. A, B, and D

Last Answer : C. currency

Which of the following is not true of a letter of credit? A. it is a document B. issued by a bank C. at the request of the exporter D. the bank agrees to honor a draft drawn on the importer E. payable in the designated currency

Description : Which of the following is not true of a letter of credit? A. it is a document B. issued by a bank C. at the request of the exporter D. the bank agrees to honor a draft drawn on the importer E. payable in the designated currency

Last Answer : C. at the request of the exporter

Which of the following is not an important document in foreign trade? A. a check for the value of goods B. a draft C. bill of lading D. a letter of credit E. none of the above

Description : Which of the following is not an important document in foreign trade? A. a check for the value of goods B. a draft C. bill of lading D. a letter of credit E. none of the above

Last Answer : A. a check for the value of goods

Buying a company's accounts receivable on a nonrecourse basis is known as _____. A. switch trading B. financing C. factoring D. funding E. free trade

Description : Buying a company's accounts receivable on a nonrecourse basis is known as _____. A. switch trading B. financing C. factoring D. funding E. free trade

Last Answer : C. factoring

In a _____ countertrade the initial seller receives compensation in products that arise out of the original sale. A. consignment B. barter C. counterpurchase D. buy-back agreement E. switch trading

Description : In a _____ countertrade the initial seller receives compensation in products that arise out of the original sale. A. consignment B. barter C. counterpurchase D. buy-back agreement E. switch trading

Last Answer : D. buy-back agreement

A document that contains a precise description of the goods is known as a _____. A. weight list B. packing list C. commercial invoice D. certificate of origin E. consular invoice

Description : A document that contains a precise description of the goods is known as a _____. A. weight list B. packing list C. commercial invoice D. certificate of origin E. consular invoice

Last Answer : C. commercial invoice

A commercial invoice is issued by _____. A. exporter B. exporter's bank C. importer D. importer's bank E. confirming bank

Description : A commercial invoice is issued by _____. A. exporter B. exporter's bank C. importer D. importer's bank E. confirming bank

Last Answer : A. exporter

If an exporter is doubtful about an issuing bank's ability to pay, he will expect a domestic bank to join the transaction in a _____ letter of credit. A. revolving B. irrevocable C. revocable D. unconfirmed E. confirmed

Description : If an exporter is doubtful about an issuing bank's ability to pay, he will expect a domestic bank to join the transaction in a _____ letter of credit. A. revolving B. irrevocable C. revocable D. unconfirmed E. confirmed

Last Answer : E. confirmed

If a letter of credit can be neither cancelled nor modified without the consent of all parties, it is known as _____. A. revolving B. irrevocable C. revocable D. unconfirmed E. unclean

Description : If a letter of credit can be neither cancelled nor modified without the consent of all parties, it is known as _____. A. revolving B. irrevocable C. revocable D. unconfirmed E. unclean

Last Answer : B. irrevocable

A(n) _____ bill of lading does not guarantee that the goods have been loaded on the vessel. A. on-board B. foul C. received-for-shipment D. straight E. order

Description : A(n) _____ bill of lading does not guarantee that the goods have been loaded on the vessel. A. on-board B. foul C. received-for-shipment D. straight E. order

Last Answer : C. received-for-shipment

If a carrier is instructed to deliver goods to an importer, a _____ bill of lading is used. A.straight B. order C. documentary D. on-board E. clean

Description : If a carrier is instructed to deliver goods to an importer, a _____ bill of lading is used. A.straight B. order C. documentary D. on-board E. clean

Last Answer : A.straight

If a draft is accepted by a bank, it becomes a _____. A. valid draft B. demand draft C. usance draft D. banker's acceptance E. drawee's acceptance

Description : If a draft is accepted by a bank, it becomes a _____. A. valid draft B. demand draft C. usance draft D. banker's acceptance E. drawee's acceptance

Last Answer : D. banker's acceptance

If a draft is made to bearer, payment should be made to _____. A. a bank B. drawer C. acceptor D. anyone who presents the draft E. all of the above

Description : If a draft is made to bearer, payment should be made to _____. A. a bank B. drawer C. acceptor D. anyone who presents the draft E. all of the above

Last Answer : D. anyone who presents the draft

When exporting some common pitfalls include: A. failure to use an export management company B. failure to print service, sales, and warranty messages in local languages C. chasing orders around the world instead of establishing a basis for profitable operations and orderly growth D. failure to consider licensing or joint venture agreements E. all of the above

Description : When exporting some common pitfalls include: A. failure to use an export management company B. failure to print service, sales, and warranty messages in local languages C. chasing orders around the ... orderly growth D. failure to consider licensing or joint venture agreements E. all of the above

Last Answer : E. all of the above

Which of the following is not necessarily a party to a forfaiting transaction? A. exporter B. importer C. broker D. bank E. forfaiter

Description : Which of the following is not necessarily a party to a forfaiting transaction? A. exporter B. importer C. broker D. bank E. forfaiter

Last Answer : C. broker

Which of the following is not a form of countertrade? A. barter B. consignment C. switch trading D. counterpurchase E. compensation agreement

Description : Which of the following is not a form of countertrade? A. barter B. consignment C. switch trading D. counterpurchase E. compensation agreement

Last Answer : B. consignment

Which of the following is not a form of offset agreements? A. coproduction B. licensed production C. subcontractor production D. cash in advance E. technology transfer

Description : Which of the following is not a form of offset agreements? A. coproduction B. licensed production C. subcontractor production D. cash in advance E. technology transfer

Last Answer : D. cash in advance

Which of the following is not true of a consular invoice? A. provides customs officials with all information B. facilitates easy customs clearance C. helps customs officials assess duties D. issued by the consulate of the exporting country E. it is not a title to the goods

Description : Which of the following is not true of a consular invoice? A. provides customs officials with all information B. facilitates easy customs clearance C. helps customs officials assess duties D. issued by the consulate of the exporting country E. it is not a title to the goods

Last Answer : D. issued by the consulate of the exporting country

Which of the following documents should necessarily accompany a draft? A. certificate of origin B. weight list C. packing list D. inspection certificate E. none of the above

Description : Which of the following documents should necessarily accompany a draft? A. certificate of origin B. weight list C. packing list D. inspection certificate E. none of the above

Last Answer : E. none of the above

Which of the following may be required as additional documents in a letter of credit? A. commercial invoice B. insurance document C. consular invoice D. certificate of origin E. all of the above

Description : Which of the following may be required as additional documents in a letter of credit? A. commercial invoice B. insurance document C. consular invoice D. certificate of origin E. all of the above

Last Answer : E. all of the above

When IBM ships products to its subsidiary in Argentina, it will most likely use a ____ draft. A. sight B. clean C. D/P D. demand E. all of the above

Description : When IBM ships products to its subsidiary in Argentina, it will most likely use a ____ draft. A. sight B. clean C. D/P D. demand E. all of the above

Last Answer : B. clean

Documentary drafts require various shipping documents such as ____. A. bills of lading B. insurance certificates C. commercial invoices D. A and B E. A, B, and C

Description : Documentary drafts require various shipping documents such as ____. A. bills of lading B. insurance certificates C. commercial invoices D. A and B E. A, B, and C

Last Answer : E. A, B, and C

Forms of countertrade include the following except ___. A. simple barter B. clearing arrangement C. switch trade D.counterpurchase E. mutual agreement

Description : Forms of countertrade include the following except ___. A. simple barter B. clearing arrangement C. switch trade D.counterpurchase E. mutual agreement

Last Answer : E. mutual agreement

Which of the following is not a condition for drafts to be negotiable? A. must be in writing, signed by the drawer B. must contain a promise to pay a certain sum if goods are received C. must contain an order to pay D. must be payable on sight or at a specified date E. must be made out to order or bearer

Description : Which of the following is not a condition for drafts to be negotiable? A. must be in writing, signed by the drawer B. must contain a promise to pay a certain sum if goods are received C. must contain an ... D. must be payable on sight or at a specified date E. must be made out to order or bearer

Last Answer : B. must contain a promise to pay a certain sum if goods are received

Non-monetary items which are carried in terms of historical cost denominated in a foreign currency should be reported using the exchange rate at the date of the ___________ (a) Balance Sheet (b) Transaction (c) Settlement (d) None of the above

Description : Non-monetary items which are carried in terms of historical cost denominated in a foreign currency should be reported using the exchange rate at the date of the ___________ (a) Balance Sheet (b) Transaction (c) Settlement (d) None of the above

Last Answer : b) Transaction

Non-monetary items in foreign currency shall be converted into reporting currency by using which exchange rate? a. closing rate b. average rate c. actual rate effective on date d. all the above

Description : Non-monetary items in foreign currency shall be converted into reporting currency by using which exchange rate? a. closing rate b. average rate c. actual rate effective on date d. all the above

Last Answer : c. actual rate effective on date

What is the highest denomination of currency notes in circulation as legal tender in India at present? -Do You Know?

Description : What is the highest denomination of currency notes in circulation as legal tender in India at present? -Do You Know?

Last Answer : answer:

Which bank prints currency notes of the denomination of Rs. 100? -Do You Know?

Description : Which bank prints currency notes of the denomination of Rs. 100? -Do You Know?

Last Answer : answer:

What is the highest denomination of currency notes in circulation as legal tender in India at present? -Do You Know?

Description : What is the highest denomination of currency notes in circulation as legal tender in India at present? -Do You Know?

Last Answer : answer:

Who is the signatory on the Indian currency notes in denomination of two rupees and above? (1) Secretary, Reserve Bank of India (2) Finance Secretary, Minister of Finance (3) Governor, Reserve Bank of India (4) Finance Minister, Ministry of Finance

Description : Who is the signatory on the Indian currency notes in denomination of two rupees and above? (1) Secretary, Reserve Bank of India (2) Finance Secretary, Minister of Finance (3) Governor, Reserve Bank of India (4) Finance Minister, Ministry of Finance

Last Answer : (3) Governor, Reserve Bank of India

1. Which post does the Constitution of India does not mention? 2. What is the ‘Solar Corona’ mainly? 3. Who was a blind poet who worshipped Krishna and spread Krishna Bhakti cult? 4. A metal sheet with circular hole is heated. what change will be in the hole? 5. Which bank prints currency notes of the denomination of Rs. 100?

Description : 1. Which post does the Constitution of India does not mention? 2. What is the Solar Corona' mainly? 3. Who was a blind poet who worshipped Krishna and spread Krishna Bhakti cult? 4. A ... ? 20. By inserting a soft iron piece into solenoid, what does the strength of the magnetic field?

Last Answer : Answer : 1. The Deputy Prime Minister 2. Consists of molten lava 3. Surdas 4. It will Expand 5. The Bank Note Press, Dewas 6. Kathak 7. Hydrogen 8. Alain khan, the father of Dilawar Khan 9. ... Sarwani 14. 1991 15. 15 16. 46 gram 17. Chinook 18. Painters 19. State Election Commission 20. Increase

1. What is the highest denomination of currency notes in circulation as legal tender in India at present? 2. Pollination takes place with the help of bird, what is called? 3. The Lok Sabha Secretariat comes under the direct supervision of which ministry? 4. Narmada river originates from Amarkantak in which state? 5. Which upheaval took place in Bengal immediately after the Revolt of 1857 ?

Description : 1. What is the highest denomination of currency notes in circulation as legal tender in India at present? 2. Pollination takes place with the help of bird, what is called? 3. The Lok Sabha ... due to rejuvenation of a river? 20. Quit India Movement started after the failure of which proposal?

Last Answer : Answer : 1. Rs. 1000 2. Ornithophily 3. Ministry of Human Affairs 4. Madhya Pradesh 5. Indigo Disturbances 6. White of egg 7. Bernardo Bertolucci 8. Crystallography 9. U.P. 10. Sanyasi rebellion 11. Echidna 12. 530 ... 16. V. K. R. V. Rao 17. August 12 18. Four 19. Oxbow lake 20. Cripps' proposal

1. What is the total number of Fundamental Duties mentioned in the Constitution? 2. Which is the variety of coal in which the deposit contains recognisable traces of the original plant material? 3. What is the highest denomination of currency notes in circulation as legal tender in India at present? 4. Which type of rainfall leads to the formation of the windward and the leeward side? 5. Which of the Vedas was divided" into "White' and 'Black' parts?

Description : 1. What is the total number of Fundamental Duties mentioned in the Constitution? 2. Which is the variety of coal in which the deposit contains recognisable traces of the original plant material? 3. What ... production of natural rubber, what is the rank of India? 20. To whom the 'Yavanas' refer?

Last Answer : Answer : 1. 11 2. Peat 3. Rs. 1000 4. Orographic 5. Yajur 6. Ann Banoraft 7. Spleen 8. All the members of Lok Sabha 9. Tropical moist deciduous 10. Mahapadrna 11. Adiabatic 12. Science 13. American Dollar 14. Downs 15. Dhana Nanda 16. Virus 17. Speaker 18. Zero permeability 19. Fourth 20. Greeks

By which rate is the domestic current rate of currency converted into foreign currency? A. Bank Rate B. CRR C. Stock Exchange Rate D. Repo Rate E. Exchange Rate

Description : By which rate is the domestic current rate of currency converted into foreign currency? A. Bank Rate B. CRR C. Stock Exchange Rate D. Repo Rate E. Exchange Rate

Last Answer : E. Exchange Rate Explanation: An exchange rate aka a (foreign-exchange rate, forex rate, FX rate or Agio) between two currencies 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 terms of another currency.

_________ is an account maintained in foreign currency with an Authorised Dealer Bank. A. Exchange Earners‘Foreign Currency Account B. Exchange Eligible Foreign Currency Account C. Earners‘ Eligible Foreign Currency Account D. Earners‘ Exchange Foreign Currency Account E. Equity Exchange Foreign Currency Account

Description : _________ is an account maintained in foreign currency with an Authorised Dealer Bank. A. Exchange Earners Foreign Currency Account B. Exchange Eligible Foreign Currency Account C. Earners ... Account D. Earners Exchange Foreign Currency Account E. Equity Exchange Foreign Currency Account

Last Answer : A. Exchange Earners‟Foreign Currency Account Explanation: Exchange Earners‘ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Bank (Category – I Bank) in foreign exchange.

What is the difference between options and futures?

Description : What is the difference between options and futures?

Last Answer : Derivatives; derviatives is the product its price is derived from underlining asset (underlining asset my be stocks,bonds,commodities,etc) derivatives are as follows futures and options it normally call as ... contract, both participants in the contract are obliged to buy (or sell) the underlying

_______are financial contracts that derive their value from an underlying assets. a. Future b. Forward c. Derivatives

Description : _______are financial contracts that derive their value from an underlying assets. a. Future b. Forward c. Derivatives

Last Answer : c. Derivatives

What's a good place in the USA to trade foreign currency at the face exchange rate?

Description : What's a good place in the USA to trade foreign currency at the face exchange rate?

Last Answer : You’ll probably do best at your own bank if they do exchanges.

What is the most cost effective way to exchange foreign currency?

Description : What is the most cost effective way to exchange foreign currency?

Last Answer : Counterintuitively, it is often credit card companies which offer the fairest exchange rates, but too late! You already chose cash. Try Bank Leumi. They have an international reputation for fair exchange, and you don’t have to get sheckles :)

What is the best month of the year to exchange U.S. Dollars for foreign currency?

Description : What is the best month of the year to exchange U.S. Dollars for foreign currency?

Last Answer : ad would know this one he works with the currency every week day but i cant answer this one sorry

Where do I go to exchange foreign currency?

Description : Where do I go to exchange foreign currency?

Last Answer : The best place to convert your dollars to yen is right at the airport; they have bank offices specifically for this. Outside of the airport, the best place to do this will be any bank branch.

Which of the following constitutes Foreign Direct Investment? A. A speculator trying to make a profit by buying company shares on a foreign stock exchange. B. A UK energy company buying territory abroad where it expects to find oil reserves. C. A tourist purchasing foreign currency to spend on a holiday abroad. D. A company signing an agreement with a wholesaler to distribute its products in foreign markets.

Description : Which of the following constitutes Foreign Direct Investment? A. A speculator trying to make a profit by buying company shares on a foreign stock exchange. B. A UK energy company buying territory ... D. A company signing an agreement with a wholesaler to distribute its products in foreign markets.

Last Answer : A tourist purchasing foreign currency to spend on a holiday abroad.

The ratio of foreign rates to domestic rates measured in the 'same' currency is known as:a) Real exchange rateb) Nominal exchange ratec) Superfluous exchange rated) None of the above

Description : The ratio of foreign rates to domestic rates measured in the 'same' currency is known as: a) Real exchange rate b) Nominal exchange rate c) Superfluous exchange rate d) None of the above

Last Answer : a) Real exchange rate

A foreign currency transaction should be recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the recording.

Description : A foreign currency transaction should be recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the recording.

Last Answer : FALSE

The Foreign exchange of India is kept with _________ A. SBI B. ECGC C. RBI D. NABARD E. other than those given as options

Description : The Foreign exchange of India is kept with _________ A. SBI B. ECGC C. RBI D. NABARD E. other than those given as options

Last Answer : C. RBI Explanation: Reserve Bank of India accumulates foreign currency reserves by purchasing from authorized dealers in open market operations. Foreign exchange reserves of India act as a cushion against rupee ... Currency Assets (b) Gold (c) SDRs (d) Reserve Tranche Position in the IMF.

Globalization can create problems for business because: A. It can result in more competition. B. It reduced vulnerability to political risk and uncertainty when operating abroad. C. It means that they can increase prices. D. All the options given are correct.

Description : Globalization can create problems for business because: A. It can result in more competition. B. It reduced vulnerability to political risk and uncertainty when operating abroad. C. It means that they can increase prices. D. All the options given are correct.

Last Answer : All the options given are correct.

Mark correct options a) A post office or Sorting office or section which exchanges mails with offices in foreign countries is known as ‘Office of exchange”. b) A Foreign post office is an office of exchange in which the work of assessment of customs duty on foreign mail is also carried out. c) A Sub foreign Post office is does not close and receive any bags but in which the work of customs examination, assessment and accounting of custom duty is carried out. d) All the above

Description : Mark correct options a) A post office or Sorting office or section which exchanges mails with offices in foreign countries is known as Office of exchange . b) A Foreign post office is an office ... of customs examination, assessment and accounting of custom duty is carried out. d) All the above

Last Answer : d) All the above

When water is filled in a bottle and is allowed to freeze, the bottle breaks because _____? A. Water expands on freezing B. Bottle contracts at freezing point C. Temperature outside the bottle is less than that inside the bottle D. None of them

Description : When water is filled in a bottle and is allowed to freeze, the bottle breaks because _____? A. Water expands on freezing B. Bottle contracts at freezing point C. Temperature outside the bottle is less than that inside the bottle D. None of them

Last Answer : ANSWER: A