The essential feature of a _______ is that it immediately fixed the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date ?

Related Mcqs:

Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?

A. letter a credit B. foreign currency option C. cable transfer D. bill of exchange...

Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?

A. America’s demand for Swiss merchandise rises B. America’s demand for Swiss merchandise falls C. Switzerland’s demand for American merchandise rises D. Switzerland’s demand for American merchandise falls...

If Sweden’s currency depreciates relative to Norway’s currency ?

A. Norway’s export goods become more expensive to Norway’s residents B. Norway’s exports goods become cheaper to Sweden’s residents C. Sweden’s export goods become cheaper to Norway’s residents D. Sweden’s export goods become cheaper to Sweden’s residents...

Which of the following is not a reason why Joe Smith (an American) might participate as a demander in the foreign exchange market ?

A. his desire to open a bank account in Japan B. his desire to purchase an automobile produced domestically C. his desire to travel to Europe D. his desire to purchase Treasury bills issued by the British government...

Under a system of floating exchange rates there is a general tendency for ?

A. exchange rates to be insensitive to the differential rates of inflation between countries B. the currencies of relatively high-inflation countries to depreciate C. the currencies of relatively high inflation countries to appreciate D. the currencies of relatively low inflation countries to depreciate...