Question

How do banks handle maturity periods in non-whole number months for Forward Transactions?

a.

They round down to the nearest whole number of months

b.

They round up to the nearest whole number of months

c.

They provide the maturity period without any adjustment

d.

They extend the maturity period to the next whole number of months

Posted under IC 89 Management Accounting

Answer: (c).They provide the maturity period without any adjustment Explanation:Banks generally provide maturity periods for Forward Transactions without any adjustment for non-whole number months.

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Q. How do banks handle maturity periods in non-whole number months for Forward Transactions?
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