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The Major Difference Between Currency Futures and Forward Contracts Is

question 61

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The major difference between currency futures and forward contracts is that futures contracts are standardized for ease of trading on an exchange market whereas forward contracts are specialized and tailored to meet the needs of clients.


Definitions:

Private Capital

Funds or assets owned by individuals, companies, or investors, not by the government or public entities.

World Bank

An international lending institution that offers financial aid and grants to the governments of developing countries for capital project initiatives.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by the rise in real GDP.

Developing Countries

Nations with a lower standard of living, underdeveloped industrial base, and lower Human Development Index (HDI) compared to developed countries.

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