A Forward Contract on Currency

question 46

Multiple Choice

A forward contract on currency:

• A)is a way to hedge credit (default) risk.
• B)is used to to swap fixed interest payments in euros for variable interest payments in dollars.
• C)is an agreement between a customer and a bank to exchange one currency for another on a specified date at a specified exchange rate.
• D)is an agreement between a customer and a bank to exchange one currency for another on a specified date at whatever the exchange rate is on that day.

---

Definitions:

Input Voltage

The electrical voltage supplied to the inputs of a device or circuit.

Contact Instruction

Instructions related to the physical or logical connection or interaction between two or more components or systems.

Addressing Format

Refers to the method and structure used to locate and reference memory locations or peripheral devices in computing systems.