Register
1. Interest expense on a loan denominated in another currency is converted at: A. The forward rate for delivery when the interest must be paid B. The spot rate when the loan was made C. The spot rate when
118k views
5 votes
1. Interest expense on a loan denominated in another currency is converted at: A. The forward rate for delivery when the interest must be paid B. The spot rate when the loan was made C. The spot rate when the interest is accrued D. The average spot rate for the period the interest covers

User Pauxu
by
5.1k points

1 Answer

5 votes

Answer:

The correct answer is letter "C": The spot rate when the interest is accrued.

Step-by-step explanation:

The Spot Rate is the immediate selling price on the acquisition of goods, currency, and securities. The spot rate is the market price at the time of the quote. The markets in which spot rates are calculated are fluid and competitive. Spot rates adjust as much as the demand rises and falls.

Therefore, interest expense on a loan denominated in a foreign currency is translated to the spot rate ar the moment when the interest rate is accrued.

User Marco Fatica
by
5.2k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.8m questions

7.6m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
Demonstrate how binomial nomenclature is related to classification systems by identifying the genus name and the specific name of the domestic cat felis catus
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!