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Currency Markets Operate Under a System of _____ in Which

question 35

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Currency markets operate under a system of _____ in which the prices of different currencies move up or down based on the demand for and the supply of each currency.


Definitions:

Spot Rate

The current market price for immediately exchanging one currency for another.

Forward Contract

A binding financial agreement to buy or sell an asset at a predetermined future date and price.

Journal Entries

The foundation of the double-entry bookkeeping system, journal entries record all financial transactions in a company's accounting system.

Forward Contract

An individually tailored pact between two sides for the buying or selling of an asset at an agreed price on a future date.

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