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1 year ago

An agreement to exchange dollar bank deposits for euro bank deposits in one month is a:_________

Business

1 answer:

koban [17]1 year ago

8 0

An agreement to exchange dollar bank deposits for euro bank deposits in one month is a <u>forward transaction.</u>

<h3>What is a forward contract?</h3>

A tailored agreement between two parties to purchase or sell an item at a predetermined price at a later date is known as a forward contract. Although its non-standardized nature makes it particularly suitable for hedging, a forward contract can be utilized for speculating or hedging.

A forward contract can be tailored to a commodity, amount, and delivery date, unlike typical futures contracts. Grain, precious metals, natural gas, oil, and even chicken are examples of traded commodities. Settlement of a forward contract may take place in cash or by delivery.

Forward contracts are categorized as over-the-counter (OTC) instruments because they are not traded on a centralized exchange. While the OTC nature of these products makes it simpler to adjust terms, the absence of a centralized clearinghouse also increases the chance of default.

Thus, it is a forward transaction that is used to exchange dollar bank deposits for euro bank deposits in one month.

For more information on <u>Forward Transaction</u>, refer to the given link:

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Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company returns $200

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Answer:

Amount of Check = $784

so correct option is a. $784

Explanation:

given data

Merchandise on account = $1,000

Long Company returns = $200

credit terms = 2/10

n/30

to find out

What is the amount of the check

solution

we know here that Total Merchandise will be

Total Merchandise = Merchandise on account - returns ....................1

Total Merchandise = $1000 - $200

Total Merchandise = $800

and

discount will be here

Discount = 0.02 × 800

returns = $16

Amount of Check will be as

Amount of Check = Total Merchandise - Discount ...................2

put here value

Amount of Check = Total Merchandise - Discount

Amount of Check = $800 - $16

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so correct option is a. $784

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3 years ago

Hadley Corporation issued 200,000 shares of $5 par value common stock for $25 per share. During that year, the corporation susta

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Answer:

D : common stock of $1,000,000

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Hadley Corporation

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Issued shares 200,000

Par value common stock $5

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200,000 x $5

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Therefore the year-end balance sheet would show a common stock.of $1,000,000

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3 years ago

2. A fancy steakhouse in a shopping mall offers a 20% discount to employees of other stores in the mall, provided that they eat

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Answer:

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