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:

Alcoholic

An individual who has a dependence on or addiction to alcohol, often characterized by an uncontrollable urge to drink.

Increased B State

This term appears to be fabricated or too specific without a widely recognized definition in scientific literature, so I'll say NO.

Aversive A State

Likely refers to an aversive state, a condition or situation that an organism seeks to avoid due to it being unpleasant or painful.

Aversive B State

A theoretical state arising from a negative stimulus, driving an organism to action to avoid discomfort or unpleasant outcomes; not a widely used or recognized term in psychology, so context-specific definition might vary.