Which of the Following Statements Holds True for Forward Exchange

question 34

Multiple Choice

Which of the following statements holds true for forward exchange rates?

• A)It refers to the weighted average of a basket of foreign currencies.
• B)It refers to the rate at which two parties agree to exchange currency and execute a deal that takes place immediately.
• C)It refers to the rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract.
• D)It refers to the rate at which two parties agree to exchange currency and execute a deal at some specific point in the future, usually 30 days, 60 days, 90 days, or 180 days in the future.
• E)It refers to a form of exchange traded derivative whose underlying value is the rate on various financial interest rates, including treasury bills and bonds.

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Definitions:

Matched Design

A research design that matches the experimental participants with control participants who are similar on key characteristics.

Epidemiological

Relating to the study of how disease rates vary among different population groups to identify patterns, causes, and control health problems.

Experimental

Referring to a method of investigation in the sciences and social sciences in which variables are manipulated to observe and measure effects on a particular outcome.

Natural

Pertaining to or derived from the physical world and the processes in it.