The Immediate (Two-Day)exchange of One Currency for Another Is a

question 13

Multiple Choice

The immediate (two-day) exchange of one currency for another is a

• A)forward transaction.
• B)spot transaction.
• C)money transaction.
• D)exchange transaction.

---

Definitions:

Government Budget Surplus

A financial situation in which a government's revenues exceed its expenditures during a specific period of time.

Real Interest Rates

Interest rates adjusted for inflation, showing the real cost of borrowing or the real yield on savings.

Real Exchange Rate

An adjusted exchange rate between two currencies that reflects the purchasing power of the two currencies; it factors in the relative prices of a standard set of goods and services in each country.

U.S. Dollar

The official currency of the United States, widely used as a benchmark in international financial transactions.