Question

A and B exchange currency at a rate that takes place after a period of 1 month from spot date. What is the rate called in such case?

A Beyond Rate Correct Answer Incorrect Answer
B Subsequent Rate Correct Answer Incorrect Answer
C Succeeding Rate Correct Answer Incorrect Answer
D Forward Rate Correct Answer Incorrect Answer
E Offer Rate Correct Answer Incorrect Answer

Solution

Forward Rate is the rate applicable in case exchange is taking place after spot date. Generally expressed by indicating a premium or a discount for the forward period.

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