Examlex
Identify the letter of the choice that best matches the example.
-Gallery of decorative effects
Forward Rate
An agreed-upon price for a financial transaction that will occur at a future date, used in derivatives markets.
Exchange Rate
The worth of one currency in relation to another for converting between them, showing the amount one currency is equivalent to in another currency.
Interest Rate Parity
A theory which posits that the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and the spot exchange rate.
Interest Rate Differential
The difference in interest rates between two financial instruments or two countries, often influencing currency values and investment flows.
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