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Questions and Answers
Which term refers to the immediate exchange of bank deposits in the foreign exchange market?
Which term refers to the immediate exchange of bank deposits in the foreign exchange market?
- Forward transaction
- FX Swap agreement
- Spot transaction (correct)
- Exchange rate overshooting
What is the price of one currency in terms of another called?
What is the price of one currency in terms of another called?
- Forward exchange rate
- Spot exchange rate (correct)
- Foreign exchange market
- Exchange rate overshooting
What is a contract in which one party borrows one currency from, and simultaneously lends another to, the second party called?
What is a contract in which one party borrows one currency from, and simultaneously lends another to, the second party called?
- Forward transaction
- FX Swap agreement (correct)
- Foreign exchange market
- Spot transaction
What is the exchange rate determined in the foreign exchange market for immediate exchange of bank deposits called?
What is the exchange rate determined in the foreign exchange market for immediate exchange of bank deposits called?
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What is the exchange rate determined in the foreign exchange market for future exchange of bank deposits called?
What is the exchange rate determined in the foreign exchange market for future exchange of bank deposits called?
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