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ACI

3I0-012 · Question #534

What rate should be used if the settlement date in a foreign exchange transaction is no longer a "good" date?

The correct answer is C. The affected parties should agree to adjust the exchange rate according to the prevailing relevant. See the full explanation below for the reasoning.

Question

What rate should be used if the settlement date in a foreign exchange transaction is no longer a "good" date?

Options

  • AThe original rate of the transaction
  • BThe original rate of the transaction adjusted by the relevant forward points
  • CThe affected parties should agree to adjust the exchange rate according to the prevailing relevant
  • DThe rate is open to negotiation by the two parties

How the community answered

(67 responses)
  • A
    4% (3)
  • B
    15% (10)
  • C
    75% (50)
  • D
    6% (4)

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Full 3I0-012 Practice