All categories

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 forward transaction.

<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 Forward Transaction, refer to the given link:

brainly.com/question/28238316

#SPJ4

You might be interested in

Assume Zap industries reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 1,730,200 $

Mazyrski [523]

Answer:

The amount of Bad Debt Expense reported in 2019 was $16,100.

Explanation:

Our concern is mainly on the allowance for doubtful accounts. Based on the facts given in the question, the opening balance of the allowance account was $79,900 credit balance, while the closing balance was $96,000 credit. Since there were no write-offs or recoveries during 2019, the bad debt expense is simply the difference between the closing balance and the opening balance i.e, $96,000 - $79,900 = $16,100.

The journal entries will be:

Debit Bad debt expense $16,100

Credit Allowance for doubtful account $16,100

(To record the bad debt expense for 2019)

4 0

3 years ago

When cell phones were first entering the market, they were relatively large and reception was undependable. All cell phones were

ahrayia [7]

Answer:

The correct answer is: Markets evolve toward greater heterogeneity over time.

Explanation:

The history of cell phones shows a marketing trend that markets evolve towards greater heterogeneity over time.

This occurs in relation to market segmentation, that is, organizations identify groups of consumers with similar tastes and develop all their marketing actions to reach a certain demand according to their needs, tastes and preferences. Market segmentation creates a heterogeneous market, with differentiated products in terms of functionality, design, price, benefits, etc., so that existing demands are met.

8 0

3 years ago

The publisher is __________. The publishing date is __________. The author is __________.

Rina8888 [55]

Answer:

Houghton Mifflin Company . . . 2002 . . . Robert Overholtzer

Explanation:

A well-known publisher named "Houghton Mifflin Company" published and issued a book known as 'Courage for the earth'. Since year 2oo2 the book was written and composed by the great writer of the books known as Robert Overholtzer. He use to be passionate about writing books for humankind, his thinking was to guide humankind through his books. So this is also one of the book that had been written by him.

7 0

3 years ago

Read 2 more answers

The interest earned on policy dividends is

Mazyrski [523]

The amount in interest is specified in the policy and compounds annually

8 0

3 years ago

Read 2 more answers

Did I graph number 1 correct and is the number 2 answer yes?

coldgirl [10]

Yes you did it all correct

7 0

4 years ago