Question
Which of the following statements is an example of
deductive reasoning?Solution
Explanation: Â This is an example of deductive reasoning because it starts with a general statement (all mammals have a backbone) and applies it to a specific case (dogs are mammals, so they have a backbone).
The exchange rate system where the value of a currency is determined by market forces is called a:
Exchange rate determination by comparing purchasing power of currencies is:
A foreign subsidiary reports its accounts in USD. On consolidation, the holding company translates the figures into INR. Which rate should be used for i...
If USD/INR = 83.00 and GBP/USD = 1.25, what is the GBP/INR cross rate?
The theory that states the exchange rate between two currencies is determined by the relative price levels in the two countries is the:
An importer based in India has a large payment to make in EUR after 2 months. To reduce exchange rate risk, the firm buys a European Call Option with a ...
A firm in India has to pay €5 million in 3 months. They expect the rupee to depreciate against the euro. Which of the following hedging tools will bes...
The difference between the buying and selling rates quoted by a dealer is called:
An Indian exporter receives a payment of USD 50,000 when the exchange rate is ₹83/USD. At the year-end, the rate drops to ₹80/USD and the amount is ...
ParentCo has a net investment in foreign subsidiary of USD 50m. It borrows USD 30m to hedge part of the net investment. The USD loan is designated as a ...
