Which of the Following Is the Best Definition of Forward

question 68

Multiple Choice

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

• A) British and Irish government securities, including issues of local British authorities and some overseas public-sector offerings.
• B) The condition stating that the interest rate differential between two countries is equal to the difference between the forward exchange rate and the spot exchange rate.
• C) The theory that real interest rates are equal across countries.
• D) Agreement to exchange currency at some time in the future.
• E) The agreed-on exchange rate to be used in a forward trade.

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