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Which of the Following Statements Is True

question 12

Multiple Choice

Which of the following statements is true?


Definitions:

Future Rate

The anticipated interest rate or currency exchange rate applicable to financial transactions that will occur in the future.

Spot Exchange Rate

The present rate at which one can purchase or sell a currency for immediate transfer.

Forward Exchange Rate

A contractually fixed exchange rate for the future exchange of currencies at a specified date, used to hedge against foreign exchange risk.

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