The Main Purpose in Contracting to Purchase Foreign Currency in the Forward

question 40

Multiple Choice

The main purpose in contracting to purchase foreign currency in the forward market is to:

• A) earn a premium (interest) on the exchange.
• B) lock into a price now.
• C) take advantage of future price reductions.
• D) avoid the more expensive spot rates.

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Definitions:

Declarative Knowledge

Information held in memory that is able to be verbalized; sometimes called knowing that.

Ego

In psychoanalysis, the part of the psyche that mediates between the conscious, the unconscious, and the external world.

Implicit Selves

The unconscious aspects of the self, including attitudes and beliefs that influence behavior without conscious awareness.

Explicit Selves

The aspects of an individual's self-concept that are consciously recognized and expressed.