A ___________ Between a Bank and a Customer Calls for a Fixed

question 15

Multiple Choice

A ___________ between a bank and a customer calls for a fixed delivery date,at a fixed exchange rate for a specified amount of one currency against another currency payment.

• A)spot quotation
• B)currency option
• C)currency swap
• D)forward contract

---

Definitions:

Transaction Costs

The expenses incurred when buying or selling securities, including broker fees and taxes.

Futures Markets

Competitive marketplaces where parties can trade standardized futures contracts; that is, legal agreements to buy or sell something at a predetermined price at a specified time in the future.

Leverage

The use of borrowed funds or financial instruments to increase the potential return of an investment, which can also magnify the potential for loss.