The Main Purpose in Contracting to Purchase Foreign Currency in the Forward

question 38

Multiple Choice

The main purpose in contracting to purchase foreign currency in the forward market is to:

• A) earn a premium on the exchange.
• B) lock into a future currency price now.
• C) take advantage of future price reductions.
• D) avoid the more expensive spot rates.

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Definitions:

Grevy's Zebras

A species of zebra distinguished by its large ears and narrow stripes, known for its conservation status and social behavior.

Water Sources

Locations or objects from which water can be obtained, including natural sources like rivers and lakes or man-made systems.

Lek Polygyny

A mating system in which males display collectively in an area known as a lek, to attract and mate with multiple females.

Arena

A place or platform where competitive events happen, often used metaphorically in discussions of animal behavior and evolutionary psychology.