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      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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