What Is the Difference Between a Spot Exchange Rate and a Forward

question 51

Essay

What is the difference between a spot exchange rate and a forward exchange rate?

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Definitions:

Collection Agency

An organization employed by creditors to collect funds that are owed by individuals or businesses, usually when those debts are past due.

Principal

The original amount of money borrowed or invested, excluding any interest or dividends.

Defaults

In financial contexts, refers to the failure to meet the legal obligations or conditions of a loan, such as not making the required payments.

Secured Transaction

A financial agreement in which the borrower provides the lender a security interest in certain assets as collateral for a loan.