Derivative Instruments and Hedging Activities Paper 4

1

Gains and losses of the effective portion of a hedging instrument will be recognized in current earnings in each reporting period for which of the following?
Fair value hedge
Cash flow hedge






2

Which of the following risks are inherent in an interest rate swap agreement?
I. The risk of exchanging a lower interest rate for a higher interest rate.
II. The risk of nonperformance by the counterparty to the agreement.






3

Which of the following meet the definition of assets and/or liabilities? Derivative instruments G/L on the fair value of derivatives






4

Which of the following is not a type of foreign currency hedge?






5

Which of the following is not a type of foreign currency hedge?






6

Which of the following is not a type of foreign currency hedge?






7

Which of the following foreign currency transactions is not accounted for using hedge accounting?






8

The risk of an accounting loss from a financial instrument due to possible failure of another party to perform according to terms of the contract is known as






9

Examples of financial instruments with off-balance-sheet risk include all of the following except






10

Off-balance-sheet risk of accounting loss does not result from






Result

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