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Describe the Main Forms of Foreign Exchange Contracts and Explain

question 79

Essay

Describe the main forms of foreign exchange contracts and explain in what circumstances each contract is used.Clarify how dealers earn an income from their FX trading activities.


Definitions:

Free Riding

Benefiting from resources, goods, or services without contributing to the cost or effort involved.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on simple tasks and doing worse on complex tasks.

Friendly Audience

A group of people who are supportive, receptive, and encouraging, often making it easier for speakers or performers.

Social Control

A mechanism used by society to regulate individual behavior and maintain social order.

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