Which of the following is a type of international insurance?  Bond insurance        Export credit insurance        Tender exchange rate indemnity        All answers are correct        None of the answers are correct

Q: Explain pegged exchange rates

A: Exchange rate is the value of one country’s currency in exchange of other country’s currency.

Q: U.S. GAAP accounting different from

A: International Financial reporting standards: IFRS can be defined as set of accounting standards used…

Q: State the different types of foreign exchange risk that can be hedged and how foreign currency…

A: Different types of foreign exchange risks: Transaction risk Translation risk Economic risk

Q: Country risk is: Group of answer choices A. The risk that a counterparty or obligor will not be…

A: The risk that a counterparty or obligor will not be able to pay its obligations because of…

Q: What is the difference between pegged and floating rate exchanges?

A: A nominal exchange rate that is firmly established by the monetary authority with regard to a…

Q: What are pegged exchange rates?

A: Pegged exchange rate: It is otherwise called a fixed exchange rate, which is a kind of conversion…

Q: Which of the following is NOT a characteristics of Eurobonds? a. They are traded on a self-regulated…

A: Eurobonds are those bonds that are issued and denominated in a different currency than the currency…

Q: what does it mean by " How secure are documentary payment terms" in international trade?

A: International trade refers to exchange of the services and the goods between nations. Consumers and…

Q: Foreign Currency Exchange mitigation is called Hedging Select one: True False

A: The objective of the question is to understand whether the term 'hedging' is used to describe the…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to current liabilities and…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: None

A: Interest rate parity (IRP) is a fundamental concept in financial economics. It refers to the…

Q: Explain the difference between commutative contract and non-commutative contract. Why Insurance is…

A: A commutative contract is a type of agreement between two parties where the exchange of goods,…

Q: Why do we need a foreign exchange ma

A: Foreign exchange market is where one can buy and sell currencies of other countries and convert…

Q: None

A: Interest rate parity (IRP) is a fundamental concept in financial economics. It refers to the…

Q: Explain the ‘qualifying asset’ and how do we treat exchange rate differences relating to the…

A: A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for…

Q: What is a convertible currency?

A: Introduction: A convertible currency that might be swapped for a foreign currency. Currency…

Q: An amount of 1200 per year is to be paid into an account each for the next five years. Using an…

A: Annual deposit = $1200 Interest rate = 12% compounded quarterly  Period - 5 years

Q: Short bio on the Euro (EUR) and its importance to global trade.

A: The Euro (EUR) is the official currency of 19 of the 27 member countries of the European Union. This…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.