The 'Forward' Rate of Exchange for Foreign Currencies Is

question 9

Multiple Choice

The 'forward' rate of exchange for foreign currencies is:

• A) the rate of exchange between the Australian dollar and the US dollar
• B) the rate applicable to funds to be forwarded to an overseas country
• C) the rate at which currencies can be exchanged at some future date
• D) the rate at which currencies can be exchanged immediately

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Definitions:

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, such as a bank or investment firm.

Fund Manager

An individual responsible for making investment decisions for a portfolio of securities, implementing investment strategies for a mutual fund or institutional investor.

Shareholders

Individuals or entities that own shares in a corporation and therefore have an ownership interest in the company.

Privately-Held Firms

Businesses whose ownership is private, meaning their shares are not traded on public stock exchanges.