INTERNAL CONTROL OVER FINANCIAL REPORTING & RESPON
INTERNAL CONTROL OVER FINANCIAL REPORTING & RESPON
Exam (elaborations)
INTERNAL CONTROL OVER FINANCIAL REPORTING & RESPONSIBILITIES OF MANAGEMENT 2022/2023 (CHAMBERLIAN COLLEGE OF NURSING)
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Course
INTERNAL CONTROL OVER FINANCIAL REPORTING & RESPON
Institution
INTERNAL CONTROL OVER FINANCIAL REPORTING & RESPON
INTERNAL CONTROL OVER FINANCIAL REPORTING &
RESPONSIBILITIES OF MANAGEMENT 2022/2023
(CHAMBERLIAN COLLEGE OF NURSING)
A forward contract can be used to lock in the ____ of a specified currency for a future
point in time.
a.
purchase price
b.
sale price
c.
A or B
d.
none of the above - A...
INTERNAL CONTROL OVER FINANCIAL REPORTING &
RESPONSIBILITIES OF MANAGEMENT 2022/2023
(CHAMBERLIAN COLLEGE OF NURSING)
,A forward contract can be used to lock in the ____ of a specified currency for a future
point in time.
a.
purchase price
b.
sale price
c.
A or B
d.
none of the above - ANS✔✔--A or B
Assume that a bank's bid rate on Swiss francs is $.45 and its ask rate is $.47. Its bid-
ask percentage spread is:
a.
about 4.44%.
b.
about 4.26%.
c.
about 4.03%.
d.
about 4.17%. - ANS✔✔--about 4.26%
The bid/ask spread for small retail transactions is commonly in the range of ____
percent.
a.
3 to 7
b.
.01 to .03
c.
10 to 15
d.
.5 to 1 - ANS✔✔--3 to 7
____ is not a factor that affects the bid/ask spread.
a.
Order costs
b.
Inventory costs
c.
Volume
d.
All of the above factors affect the bid/ask spread - ANS✔✔--All of the above factors
affect the bid/ask spread
, The forward rate is the exchange rate used for immediate exchange of currencies. -
ANS✔✔--False
The ask quote is the price for which a bank offers to sell a currency. - ANS✔✔--True
According to the text, the forward rate is commonly used for:
a.
hedging.
b.
immediate transactions.
c.
previous transactions.
d.
bond transactions. - ANS✔✔--hedging
If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is receiving
100,000 in 90 days, it could:
a.
obtain a 90-day forward purchase contract on euros.
b.
obtain a 90-day forward sale contract on euros.
c.
purchase euros 90 days from now at the spot rate.
d.
sell euros 90 days from now at the spot rate. - ANS✔✔--obtain a 90-day forward sale
contract on euros.
If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it will need
C$200,000 in 90 days to make payment on imports from Canada, it could:
a.
obtain a 90-day forward purchase contract on Canadian dollars.
b.
obtain a 90-day forward sale contract on Canadian dollars.
c.
purchase Canadian dollars 90 days from now at the spot rate.
d.
sell Canadian dollars 90 days from now at the spot rate. - ANS✔✔--obtain a 90-day
forward purchase contract on Canadian dollars.
Assume the Canadian dollar is equal to $.88 and the Peruvian Sol is equal to $.35. The
value of the Peruvian Sol in Canadian dollars is:
a.
about .3621 Canadian dollars.
b.
about .3977 Canadian dollars.
c.
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