_____ are agreements to exchange a specified amount of a foreign currency at a set price in the future.

Question

Quizplus · Accepted Answer

Currency futures and currency forwards are financial contracts that allow parties to agree on the exchange of a specific amount of a foreign currency at a predetermined price on a specified future date. These instruments are used for hedging against foreign exchange risk or for speculative purposes.

_____ Are Agreements to Exchange a Specified Amount of a Foreign