A Forward Contract Can Be Used to Lock in the ____

question 7

Multiple Choice

A forward contract can be used to lock in the ____ of a specified currency for a future point in time.

• A) purchase price
• B) sale price
• C) A or B
• D) none of the above

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Definitions:

Microfinance Loans

Small loans provided to individuals or groups in impoverished areas, intended to spur entrepreneurship and alleviate poverty.

Traditional Bank Loans

Traditional bank loans refer to fixed amounts of money borrowed from banks, with specified repayment terms, including interest, over a set period.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the borrower fails to repay.

Building Infrastructure

The process of constructing physical and organizational structures and facilities needed for the operation of a society or enterprise.