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.

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Definitions:

Commercialism

The emphasis on the maximization of profit within business activities, often associated with practices that prioritize financial gain over social, ethical, or environmental concerns.

Strikes

A form of protest where workers stop working to demand better conditions, pay, or other workplace improvements.

United States

A federal republic in North America, comprising 50 states, a federal district, and several territories, known for its diverse population and significant influence on global affairs.

Number

A mathematical object used to count, measure, and label; fundamental in mathematics and applicable in various sciences.