Question

The transaction in which the exchange of currencies takes place at a specified future date, subsequentto the spot date is known as a ______

A swap transaction Correct Answer Incorrect Answer
B forward transaction Correct Answer Incorrect Answer
C future transaction Correct Answer Incorrect Answer
D non-deliverable forwards Correct Answer Incorrect Answer
E option transaction Correct Answer Incorrect Answer

Solution

A currency forward is a  binding contract in the foreign exchange market  that locks in the exchange rate for the purchase or sale of a currency on a future date.

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