A Foreign Currency ________ Contract Calls for the Future Delivery

question 46

Multiple Choice

A foreign currency ________ contract calls for the future delivery of a standard amount of foreign exchange at a fixed time, place, and price.

• A) futures
• B) forward
• C) option
• D) swap

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Definitions:

Maker

The party in a financial transaction responsible for creating or issuing a promissory note and promising to pay it.

Payee

The individual or entity to whom a payment is to be made or has been made.

Nonassignable

Refers to a contract or rights within a contract that cannot be transferred or delegated to another party.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.