Which of the Following Is True for Forward Foreign Exchange

question 56

Multiple Choice

Which of the following is true for forward foreign exchange contracts?

• A)Common dates for future exchange are 50, 100, and 150 days forward.
• B)The actual currency exchange occurs after one week from the stated time period.
• C)They are used mostly to offset net asset positions held in the foreign currencies.
• D)They can be used for both speculation and hedging.

---

Definitions:

Discomfort

A mild state of physical or mental unease, often temporary.

Sensory Adaptation

Diminished sensitivity as a consequence of constant stimulation.

Unchanging Stimulus

A stimulus that remains constant over time, not varying or changing in its characteristics.

Neural Impulses

Electrical signals that travel along neurons, facilitating communication within the brain and between the brain and the rest of the nervous system.