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Why Are Foreign Currency Futures Contracts More Popular with Individuals

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Essay

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


Definitions:

Environmental Damage

The harm caused to the natural environment due to human activities or natural disasters.

Import Quota

A restriction set by a government on the quantity of a certain good that can be imported into the country.

Welfare Outcomes

The effects of policies or economic conditions on the well-being and quality of life of individuals or populations.

Equivalent Tariff

A tariff level that would give the same protective effect to the domestic producers as a given non-tariff barrier does.

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