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__ Is the Use of Receipts in a Particular Currency to Match Payment Obligations in the Same Currency. (Select the Missing Word Below to

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__ is the use of receipts in a particular currency to match payment obligations in the same currency. (Select the missing word below to complete the sentence)

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Answer

Currency SwappingCurrency ConversionCurrency InvoicingCurrency MatchingAnswer:# Explanation: ## Step 1: Understanding the TermsTo fill in the blank, it's important to first fully understand what each term means. -'Currency swapping' refers to the purchase of currency now to later be sold at a mutually agreed rate. -'Currency conversion' is the act of changing money from one denomination to another. -'Currency invoicing' refers to billing transactions conducted in international trade in the domestic currency of one of the firms involved. -'Currency matching' caters to the scenario mentioned in the question, it refers to the method wherein a company pairs off receipts in one currency against an amount assignable in the same currency reducing risk of fluctuating exchange rates.## Step 2: Application of the TermsIn this context, using receipts to match payment obligations suggests the use/holding of comparable amounts of foreign currency to hedge against possible future currency exchange rate fluctuations.### The appropriate formula is: ### where Balance refers to the amount left after matching the currency, amount indicates the volume of currency units to be matched, Receipts express the number of domestic currency units, and Currency refers to the count of foreign currency units. ## Step 3: Selection of the Appropriate Term The correct term to fill in the blank will be the one that most closely aligns with the provided description i.e., the use of receipts in a particular currency to match payment obligations in the same currency.# Answer: D. Currency Matching