Which of the Following Statements Holds True for Forward Exchange

question 34

Multiple Choice

Which of the following statements holds true for forward exchange rates?

• A)It refers to the weighted average of a basket of foreign currencies.
• B)It refers to the rate at which two parties agree to exchange currency and execute a deal that takes place immediately.
• C)It refers to the rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract.
• D)It refers to the rate at which two parties agree to exchange currency and execute a deal at some specific point in the future, usually 30 days, 60 days, 90 days, or 180 days in the future.
• E)It refers to a form of exchange traded derivative whose underlying value is the rate on various financial interest rates, including treasury bills and bonds.

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Definitions:

Interest Groups

Organizations formed to influence public policy in a way that benefits their members or the cause they support.

Democratic Government

A form of government in which power is vested in the hands of the people, directly or through freely elected representatives, and operates based on principles of majority rule and individual rights.

Independent Expenditures

Money spent by individuals or organizations to support or oppose political candidates or issues without coordination with the candidates or their campaigns.

Political Campaigns

Organized efforts to influence the decision-making process within a specific group, often associated with candidates running for political office.