Forward and Spot Exchange Rates

question 20

Multiple Choice

Forward and spot exchange rates

• A) are necessarily equal.
• B) do not move closely together.
• C) are always such that the forward exchange rate is higher.
• D) do move closely together, but are not necessarily equal.
• E) are unrelated to the value date.

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Definitions:

Atlantic

Referring to the Atlantic Ocean, the second largest ocean in the world, which separates the Americas from Europe and Africa.

North Eastern

A geographical term referring to the northeast part of a country or region.

Southern

Pertaining to or characteristic of the south or Southern regions, often used in a geographical or cultural context.

Citation

A reference to a source of legal authority, such as a case, statute, or regulation, in legal documents.