International Finance And Treasury - Study Mode
[#226] Order cost is cost of the
Correct Answer
(B) processing order
Explanation
Solution: Order cost is cost of the processing order. Ordering costs are the expenses incurred to create and process an order to a supplier. These costs are included in the determination of the economic order quantity for an inventory item.
[#227] Ask quote is for
Correct Answer
(A) seller
(E) seller
Explanation
Solution: Ask quote is for seller. The ask price represents the minimum price that a seller is willing to take for that same security. A trade or transaction occurs after the buyer and seller agree on a price for the security which is no higher than the bid and no lower than the ask.
[#228] A firm that purpose to connect sellers and buyers of foreign currency-denominated bank deposits is entitled
Correct Answer
(B) a broker
Explanation
Solution: A firm that purpose to connect sellers and buyers of foreign currency-denominated bank deposits is entitled a broker. A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. A broker also refers to the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.
[#229] A simultaneous purchase and sale of foreign exchange for two different dates
Correct Answer
(B) currency swap
(F) swapping of currency
Explanation
Solution: A simultaneous purchase and sale of foreign exchange for two different dates currency swap. A currency swap is an agreement in which two parties exchange the principal amount of a loan and the interest in one currency for the principal and interest in another currency.
[#230] If your local currency is in variable form and foreign currency is in fixed form quotation will be:
Correct Answer
(B) direct
Explanation
Solution: If your local currency is in variable form and foreign currency is in fixed form quotation will be direct. A local currency, is a currency that can be spent a particular area at participating organisations. Usually it will act as a complementary currency, that is to be used in additional to a national currency, rather than replace it.