Author Question: Which of the following statements about the forward exchange market is false? a. A transaction in ... (Read 49 times)

lracut11 · **on:** Jun 29, 2018

Which of the following statements about the forward exchange market is false?
a. A transaction in the forward market entails a contractual obligation to buy or sell.
b. Forward contracts are the most common foreign currency contractual hedge.
c. It gives the holder the right to buy or sell foreign currency at a prespecified price on or up to a prespecified date.
d. The exporter gets a bank to agree to a rate at which it will buy the foreign currency the exporter will receive when the importer makes payment.

Question 2

Payment by the manufacturer for obtaining space on retailers' shelves is commonly referred to as a:
a. Trade discount.
b. Promotional allowance.
c. Display and selling aid.
d. Price guarantee.
e. Slotting allowance.