14-36 the Market in Which Foreign Currency Is Traded for Immediate

question 5

Multiple Choice

14-36 The market in which foreign currency is traded for immediate delivery is the

• A)spot market.
• B)forward market.
• C)futures market.
• D)currency swap market.
• E)London capital market.

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Definitions:

Quota Rent

The earnings exceeding the normal anticipated returns due to import or export quotas.

Deadweight Loss

A decrease in economic effectiveness occurring when a good or service doesn't reach its free market equilibrium.

Minimum Wage

The lowest legal hourly rate of pay that employers can compensate workers, established to protect employees from exploitation.

Equilibrium Price

The price point in the market at which the supply of goods matches the demand for those goods.