Type of contract which involves future exchange of assets at a specified price is classified as

A future contracts
B present contract
C spot contract
D forward contract

Correct Answer: forward contract

Type of contract which involves future exchange of assets at a specified price is classified as forward contract. A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

Type of contract which involves exchange of assets will be occurred in future at price settled daily is classified as
A spot contract
B forward contract
C future contracts
D present contract
Type of contract which involves immediate exchange of funds and assets is classified as
A spot contract
B forward contract
C future contracts
D present contract
Items of property, plant and equipment can be recognized as assets when their cost can be measured reliably and it is likely that the future economic benefits associated with the assets:
A will increase gradually
B Will flow to entity
C Will diminish with the passage oftime
D Won't be available
Type of risk in which value of liabilities and assets is affected by exchange rate is classified as
A economic rates
B foreign exchange risk
C selling rate
D buying rates
During a sale, a salesperson was putting a new price tag on each item. On one shirt, he accidentally raised the price by 15% instead of lowering the price by 15%. As a result the price on the tag was Tk. 60 higher than the price that would have been the discounted price. What was the original price of the shirt?
A Tk. 220
B Tk. 250
C Tk. 150
D Tk. 200
Situation in which company replaces existing assets with new assets is classified as
A replacement projects
B new projects
C existing projects
D internal projects
A type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as
A option
B written contract
C determined contract
D featured contract
Method of auction of futures contract in which traders sell their futures contracts at a specified price by crying out in louder voices is classified as
A traders gathered auction
B close outcry auction
C specified auction
D open outcry auction
Markets where assets are bought or sold within a few days or at some future dates are classified as
A spot markets
B future markets
C Both A and B
D financial instruments
The price of a pen is 25% more than the price of a book . The Price of a pen holder is 50% more than the price of the book. How much is the price of the pen holder more than the price of the pen?
A 50%
B 25%
C 20%
D 37.5

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