An agreement to exchange dollar bank deposits for euro bank deposits in one month is a <u>forward transaction.</u>
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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.
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Answer:
the Federal Reserve creates dollars and uses them to purchase government bonds from the public.
Explanation:
The money supply is increased by the Federal Reserve Open Market Committee under expansionary monetary policy actions to increase the level of aggregate demand in the market and push the level of output when business activity in the economy is low and the economy is experiencing a recession.
The FOMC creates dollars and uses them to purchase government bonds from the public that injects money in the market by increasing the credit creation capacity of commercial banks. As the money supply increases, the spending capacity of consumers is increased, either by lowering the cost of debt on their credit cards or by increasing employment in the market with increased investments by firms as they borrow with greater zeal when the cost of borrowing is low.
Yes if you actually try to become them
Answer:
-$4,000
Explanation:
The computation of the amount of cash flow from investing activities is shown below:
= Paid a $4,000 cash to purchase land
Since the land is purchase for cash so the amount is to be shown in the investing activities in a negative value as the purchase is the outflow of cash
So the same is relevant
