Figure 3-6 
-Which of the following is evidence of a surplus of bananas?
Definitions:
Future Rate
The anticipated interest rate or currency exchange rate applicable to financial transactions that will occur in the future.
Spot Exchange Rate
The present rate at which one can purchase or sell a currency for immediate transfer.
Forward Exchange Rate
A contractually fixed exchange rate for the future exchange of currencies at a specified date, used to hedge against foreign exchange risk.
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