In the FX Markets,the Spot Exchange Rate Can Be Defined

question 26

Multiple Choice

In the FX markets,the spot exchange rate can be defined as the:

• A) exchange rate that is settled within two business days.
• B) exchange rate that is settled within five working days.
• C) direct exchange rate.
• D) exchange rate between two currencies.

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Definitions:

Miller

Often refers to a person who operates a mill, a machine to grind a cereal crop to make flour.

Risk

The exposure to potential financial loss or gain, often evaluated in decisions involving investment or finance.

Leverage

The strategy of using borrowed money to increase the potential return of an investment.

Acquisition

A merger in which one company acquires the stock of another. May be friendly or hostile (unfriendly). See Merger.