Forward Transactions

question 31

Multiple Choice

Forward transactions

• A)allow savers and borrowers to conduct a transaction now and settle in the future.
• B)allow savers and borrowers to postpone a transaction from now to the future.
• C)always involve increased risk compared with spot transactions.
• D)may not be conducted on organized exchanges.

---

Definitions:

World Economic System

Refers to the global network of economic activities, including trade, finance, and production, that interconnects the world's economies.

Second World War

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, marked by significant battles, genocide, and the eventual defeat of Axis powers.

Colonization

The act of establishing control over indigenous people of an area or country, often involving exploitation or displacement of those people.

Colonizing Nations

Countries that establish and maintain colonies in other lands, typically to exploit resources and spread their influence.