A Major Difference Between the Spot Market and the Forward

question 15

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:

Syncline

A geological fold with layers that dip inward from both sides towards the central axis, typically forming a trough.

Monocline

A geological fold in which all strata are inclined in the same direction, forming a step-like structure.

Metamorphosed

Refers to rocks that have undergone a change in mineral composition and texture due to exposure to high temperature and pressure conditions.

Shale

A fine-grained sedimentary rock composed of mud that splits easily into layers, often used in the production of oil and natural gas.