only need answer of a)

ASX-listed plumbing supplies giant Reece has tapped the market with a $600 million capital raise, becoming the latest in a long list of companies seeking extra funds during the pandemic. Reece chief executive Peter Wilson said sales of hot water units and heating equipment had risen "substantially" in March as families anticipated a long period at home during the coronavirus outbreak. But despite the rise in sales, Mr Wilson said the capital raising was "really about fortifying the business, to be able to take advantage of the opportunities that will eventually arise". The company told the ASX it was a "pre-emptive and decisive" step that would strengthen its balance sheet and position it for the future. Reece will also "temporarily suspend dividend payments to shareholders. The money to be raised includes a fully underwritten $232 million accelerated pro rata non- renounceable entitlement offer, a fully underwritten $368 million institutional placement and a non-underwritten share purchase plan. The equity raising will be conducted at a price of $7.60 per new share, equal to a 12.5 per cent discount to the last traded price of $8.69 on Friday for Reece. The company said the funds would be used to support the business during the period of global economic uncertainty, increase liquidity and reduce net debt. The measures would increase the company's total liquidity position to $917 million, Mr Wilson said on an investor and analyst call "We think we're being prudent, we think we've sized this right. We've done a lot of modelling on this, the good, the bad and the ugly, the worst-case scenario," Mr Wilson said. The company said that in its smallest market, New Zealand, trade had been "well down in the last week of March and was likely to stay this way for the duration of the strict lockdown enforced by government. But in Australia construction sites were still operating, while online sales were up about 90 per cent in March compared to March of last year. Reece shares are in a trading halt until this morning, Saranga Ranasinghe, vice president of Moody's Investors Service, said Reece's announcement was "credit positive as it will considerably strengthen the company's balance sheet and liquidity, and in turn support its ability to navigate the current challenging operating environment". Reece noted in the article, that trade in their smallest market, New Zealand had been 'well down, and likely to stay that way. As Reece generates receipts in NZD, the company is concerned about potential volatility in the FX market for the next 3-6 months. Reece's' FX dealer is quoting spot AUD/NZD 1.0531-40. In the context of this quote: a) Explain the terms: (2 marks-1 mark for description, y mark for referencing the quote above) I. Base currency > Terms currency > b) Explain from the perspective of the dealer what the FX quote indicates, including in your answer reference to the 'bid' and 'offer prices. (4 marks) c) Starting with the existing quotation, transpose the quotation and state the rule that applies to transposing existing rate quotes. (4 marks) >