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

question 71

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:

Diploid Chromosome Number

The total number of chromosomes in a diploid cell, which includes two sets of chromosomes, one from each parent.

Gamete

A mature haploid male or female germ cell which is able to unite with another of the opposite sex in sexual reproduction to form a zygote.

Sister Chromatids

Identical copies of a chromosome that are connected by a centromere and separated during cell division.

Nuclear Envelope

The double membrane structure that encloses the nucleus of a cell, separating its contents from the cytoplasm.