Foreign Currency Transactions Flashcards
1
Q
Exchange Rate
A
The amount of one currency that can be exchanged for another at a particular point in time.
2
Q
Spot Rate
A
The Exchange rate at the current date
3
Q
Forward Rate
A
A specified exchange rate between currencies at some specified future date
4
Q
Forward Exchange Contract
A
A contract to buy or sell currency at a forward rate
5
Q
Functional Currency
A
The currency of the primary economic enviroment in which the entity operates
ie. the enviornment in which the entity generates and expands cash.
