Which One of the Following Statements Concerning Forward Trades Is

question 37

Multiple Choice

Which one of the following statements concerning forward trades is correct?

• A) A forward trade is an agreement between parties to exchange a predetermined amount of currency at a rate to be determined in the future.
• B) The forward market provides a mechanism whereby firms can eliminate the collection float associated with foreign trade.
• C) The spot rate is always more favourable that the forward rate.
• D) Forward trades normally settle in two years or less.
• E) The exchange rate on a 90-day forward trade is established at the time of the trade but the currencies do not exchange hands until the end of the 90 days.

Grasp the significance of informed consent in medical trials.

Identify biases and inequalities in the selection of research subjects.

Comprehend the ethical debates surrounding experimental procedures on vulnerable populations.

Understand the purpose and ethical considerations of different clinical trial designs.

---

Definitions:

Spending Multiplier

The ratio of a change in national income to a change in government spending that causes it, indicating the impact of fiscal policy on the economy.

Long Run

A period of time in economics where all factors of production and costs are variable, and all market adjustments have been made.

Futures Contracts

Standardized legal agreements to buy or sell something at a predetermined future date and price, typically used for commodities or financial instruments.

Forward Contracts

Non-standardized contracts between two parties to buy or sell an asset at a specified future time at a price agreed upon today.