St.

Anthony’s TVET College Emdibir

Department of Accounting And Finance

Level 3. Handle Foreign Currency Transactions.

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1.Risks of Forex Trading

A. Transaction Costs May Not Be Clear B. Fraud C. There Is No Central Clearing
D. There Is No Central Marketplace E. All

2. Features of travellers' cheque.

A. Convenient B. Safe C. A&B D. None
3. Payables tracks currency gains and losses in your functional currency caused by exchange rate
fluctuations

A. True B. False

4. Types of Exchange Rate Entry

A. Manual. B. GL Daily Rates Table Default C. AutoRate D. All
5. Types of Exchange Rates
A. Spot B . GL Daily Rates Table Default C. Manual D. None
6. Reporting on Foreign Currency Transactions
A. Posting Hold Report B. Unrealized Gain / Loss Report, and Realized Gain / Loss
Report C. Cash Requirement Report D. All
7. Significant cash transactions involving in excess of the equivalent of Birr…..
A. 250,000 B.250,000 D. 200,000 D.All

8. The amount of money in an account that is available for withdrawal or investment

A. Currency B. Cleared funds C. option D. All

9……………… is a forward contract with standardized terms, including quantities and

settlement dates, that is traded on organized exchanges.

A. foreign currency future B. option C. Cleared funds D. Currency

10. Hard currencies such as those of less developed economies, are traded less frequently,
resulting in larger spreads.
A. True B. False