Why Are Foreign Currency Futures Contracts More Popular with Individuals

question 1

Essay

Why are foreign currency futures contracts more popular with individuals and banks while foreign currency forwards are more popular with businesses?

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Definitions:

Popular Sovereignty

A principle in political theory that the authority of a state and its government is created and sustained by the consent of its people, through their elected representatives.

Prigg v. Pennsylvania

Prigg v. Pennsylvania was a landmark Supreme Court case in 1842 which held that states did not have to enforce the return of runaway slaves, thereby weakening the 1793 Fugitive Slave Act.

U.S. War on Mexico

A military conflict between the United States and Mexico (1846-1848), leading to significant territorial acquisitions by the U.S.

Border Area

A region located near or along the boundary between two countries, states, or regions.