FX translation gains / losses in earnings
Non-functional currency intercompany or third-party payables or receivables
Non-functional currency cash balances (parent or subsidiary)
All of the above
None of the above
Appreciation of the CAD against the USD
Depreciation of the CAD against the USD
Depreciation of the USD against the EUR
Appreciation of the USD against the EUR
None of the above
Risk that the deal does not close after hedging the purchase price
A rise in the USD equivalent purchase price due to currency volatility
The creation of non-functional currency exposures
The potential currency risk created from a cross border inter-company loan
All of the above are currency risk factors
CBForex is the FX Online trading system used for FCA and FX transactions
CBForex allows users to access their USD accounts held with RBS Citizens, N.A.
CBForex allows clients to choose one or two users to process and approve trades
Clients can set authorization limits for each user in CBForex
The right but not the obligation to buy / sell a specified amount of currency for another (on a specific date at a fixed exchange rate)
Inflexibility with regard to the client’s ability to choose the details of the trade
The obligation to buy / sell a specified amount of currency for another (on a specific date at a fixed exchange rate)
Partial flexibility depending on where the fixed exchange rate is set
None of the above
Spot and forward rates
Interest rates
Expiration date and strike price
Volatility of the exchange rate
All of the above
Has no opportunity in foreign exchange, thus why they are with a smaller bank
Has not had a review of their potential FX needs or where FX transactions could help their business
Is better off doing their FX transactions at the kiosk of an international airport
Is not sophisticated enough to consider FX transactions
None of the above
Using ACH versus wire to send US dollars to save money on the wire fees
Asking for a quote in German Deutschmarks despite Germany's adoption of the Euro in 2002
Using an interest rate derivative to lock in the price of the press
Asking the Heidelberg rep what the cost of the press would be in Euros in addition to USD
Delaying investment in the press to avoid interest expense and currency conversion fees
Currency fluctuations could significantly change the final price paid for the equipment
The CFO should consider a credit default swap to help pay for the equipment over time
This could be an ideal use of forward currency contracts
All of the above
A and C only
Have large amounts of cash in overseas subsidiaries
Purchase inventory from foreign suppliers
Are considering doing acquisitions outside the US
All of the above
A and C only
True
False
Do you have an office in Russia?
Are you receiving routine payments in Indian Rupee?
Who do you buy from? Where do you sell to?
Would you like to learn how to hedge Brazilian Reals?
A Foreign Currency Account in the US
A local currency account in the country of the currency
Doing business in US Dollars only
All of the above
A and B only
Mexican Peso (MXN)
Euro (EUR)
Chinese Renminbi (RMB)
South African Rand (ZAR)
Lower the exchange rate
Exchange cash flows
Lock in the exchange rate
Hold the spot rate constant
None of the above
FX Market Risk / Replacement Risk
Settlement Risk
Tenor Risk
All of the above
Making and receiving cross-border payments
Depositing checks in a foreign currency
Managing a client's payables
AccessXCHANGE
None of the above
International Wire
International Letter of Credit
Foreign currency Lease (asset purchase or sale)
Corporate with foreign earnings
All of the above
Transaction accounts offer interest
Savings accounts have unlimited deposits and withdrawals
Savings accounts offer interest
Transaction accounts have a limit of 10 withdrawals per month
Abraham Lincoln
Ward Cleaver
George William Frederick (George III)
Alexander Hamilton
Cliff Huxtable
By phone
Online with CBForex
Through accessMOBILE
Via the wire room
Online with MMGPS
There is risk that one party to the transaction may not live up to the contractual obligations
The counterparty is the exchange itself, rather than a single party
The exchange is ultimately guaranteed by the Federal Reserve
One large financial institution could hold an abnormally high percentage of one side of the contract
None of the above
130
95
175
115
None of the above
Smooths out volatility
Outperforms when the currency being purchased is appreciating
Adjusts for forecast error
Utilizes dollar cost averaging
None of the above
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Here's an interesting quiz for you.