All of the following are examples of a cash flow hedge, except:
A) a forward contract to buy US$ hedging recognised borrowings in US$.
B) a forward contract to buy US$ hedging future interest payments on variable rate debt in US$.
C) a forward contract to sell US$ hedging a highly probable sale of inventory in US$.
D) a forward contract to buy US$ hedging an unrecognised firm commitment to purchase goods in US$.
Correct Answer:
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Q1: A foreign exchange dealer using the direct
Q2: A realised exchange difference arises:
A) when the
Q4: The _ is a hedge of the
Q5: A decrease in the direct rate of
Q6: All of the following assets can be
Q7: All of the following are foreign currency
Q8: At the date of the transaction, a
Q9: The degree to which changes in the
Q10: Hedge effectiveness is ascertained from:
A) the hedge
Q11: All the following items are 'monetary items'
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