A Major Difference Between the Spot Market and the Forward

question 16

Multiple Choice

A major difference between the spot market and the forward market is that the spot market deals with

• A) the immediate delivery of currencies.
• B) the merchandise trade account.
• C) currencies traded for future delivery.
• D) hedging of international currency risks.

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Definitions:

Measure Of Central Tendency

Statistical measures that summarize a data set by identifying the central position within that data set, including the mean, median, and mode.

Mean

A measure of central tendency in statistics, calculated as the sum of all values divided by the number of values.

Measure Of Variation

A statistical metric that indicates the extent to which data points in a data set diverge from the average or mean value.

Extreme Scores

Values in a set of data that are significantly higher or lower than the majority of the other data points.