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What Is the Difference Between a Forward Contract and a Currency

question 94

Essay

What is the difference between a forward contract and a currency future?

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Definitions:

Rationing

The controlled distribution of scarce resources, goods, or services, often implemented during shortages to ensure equitable distribution among all individuals.

Government Issued

Refers to products or securities that are provided or sanctioned by a government body, such as bonds or legal tender.

Price System

An economic mechanism where prices determined by supply and demand allocate resources efficiently in a market economy.

Scarce Goods

Goods that are limited in supply in comparison to their demand, leading to economic decisions regarding their allocation.

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