The Difference Between Spot and Forward Rates Is Known As

question 27

Multiple Choice

The difference between spot and forward rates is known as:

• A)spot margin.
• B)margin.
• C)future margin.
• D)forward margin.

---

Definitions:

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade and resource allocation.

Opportunity Cost

The value of the best alternative foregone as a result of making a particular choice or decision.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost compared to its competitors.

Monetary Cost

Refers to the explicit financial cost of conducting a business activity or completing a transaction, measured in units of currency.