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Explain the effects of a decrease in demand.
Future Exchange Rate
The future exchange rate is the agreed-upon rate at which two currencies will be exchanged on a specified future date, used in hedging and trading strategies.
Spot Exchange Rate
The present exchange rate for immediate swap of one currency to another.
Forward Exchange Rate
The price set today for a currency exchange that will occur at a future date.
Spot Exchange Rate
The current exchange rate at which a currency can be bought or sold for immediate delivery.
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