The Spot Rate Is

question 13

Multiple Choice

The spot rate is

• A) the rate quoted for delivery within two business days.
• B) usually higher than the forward rate.
• C) a contract rate between the corporation and the foreign exchange trader at the bank for future delivery.
• D) usually at a premium for sales and a discount for purchases.

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Definitions:

Entrepreneurs

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Circular Flow Model

An economic model that depicts how money and goods move through different sectors in an economy, including households, businesses, and governments.

Basic Markets

Markets that are fundamental to the economy, dealing with the exchange of goods, services, labor, and financial instruments.

Central Planning

An economic system where the government or central authority makes all decisions regarding the production and distribution of goods and services.