A Derivative Is A

question 73

Multiple Choice

A derivative is a:

• A) contract derived from a spot market rate.
• B) fixed exchange rate.
• C) flexible exchange rate.
• D) contract between firms for foreign currency.

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Definitions:

Trade Barriers

Measures imposed by governments to regulate or restrict international trade, including tariffs, quotas, embargoes, and standards.

Adverse Effects

Negative outcomes or damages that result from an action or policy.

Alleged Benefits

Claimed advantages or positive outcomes that may not have been fully verified or proven.

Voluntary Export Restriction

An agreement by a country to limit the quantity of goods exported to another country to avoid tariffs or quotas.