Forward Rates Represent the Expectations of Currency Traders and Bankers

question 99

True/False

Forward rates represent the expectations of currency traders and bankers regarding a currency's future spot rate.

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Definitions:

Antiassignment Clause

a contractual provision that prohibits the transfer of rights or delegation of duties under the contract to another party, without the original party's consent.

Delegated Duty

A task or responsibility that is assigned by someone in a higher position of authority to someone else, typically within an organizational structure.

Contractual Rights

Rights that arise out of agreements between parties, granting specific entitlements or obligations as delineated in the contract.

Express Provision

An express provision is a clause or term in a contract or legal document that is explicitly stated, leaving no room for misunderstanding or interpretation.