Which of the Following Is the Best Definition of Spot

question 194

Multiple Choice

Which of the following is the best definition of spot exchange rate.

• A) The exchange rate on a spot trade.
• B) The idea that the exchange rate adjusts to keep purchasing power constant among currencies.
• C) Risk related to changes in value that arise because of political actions.
• D) Large borrowers issue notes up to one year in maturity in the Euromarket. Banks underwrite or sell notes.
• E) The rate most international banks charge one another for overnight Eurodollar loans.

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Definitions:

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