Forward Rate Can Best Be Defined As

question 315

Multiple Choice

Forward rate can best be defined as:

• A) An agreement to trade currencies based on the exchange rate today for settlement in two days.
• B) The exchange rate used on trading currencies.
• C) An agreement to exchange currency at some time in the future.
• D) The agreed upon exchange rate to be used in a forward trade.
• E) The idea that the exchange rate adjusts to keep purchasing power constant among currencies.

---

Definitions:

Continuity

The unbroken and consistent existence or operation of something over a period of time.

Ethnic Minority

A group within a community which differs from the majority in racial, national, cultural, or religious characteristics.

Socioeconomic Status

A social standing or class of an individual or group often measured by education, income, and occupation.

Immigrants

Individuals who move from their country of origin to a new country to live permanently.