Question

Which of the following is a non-deliverable forward

Q: Answer-Which of the following is a non-deliverable forward (NDF) market feature?

NDFs are forward contracts where no physical delivery of currency occurs. Instead, profitloss is settled in domestic currency, often used for currencies not freely traded like INR offshore.

(NDF) market feature?

A Actual delivery of foreign currency

B No settlement occurs

C Cash settlement in domestic currency

D Only for residents

E Settled through RBI

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Which of the following is a non-deliverable forward

Solution