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Explain the Difference Between Spot Exchange Rates and Forward Exchange

question 42

Essay

Explain the difference between spot exchange rates and forward exchange rates.Briefly explain how the forward exchange market works.


Definitions:

Bimodal

A distribution with two different modes (peaks) where the data shows two prevalent values.

Skewed

A distribution that is not symmetrical, where the bulk of values are concentrated to one side of the mean.

Innings

A division or segment of a game in sports like cricket and baseball, where one team takes turns batting and the other fields.

Histogram

A graphical representation of the distribution of numerical data, using bars to show the frequency of data in successive numerical intervals of equal size.

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