The exchange rate quoted for future delivery of foreign currency is the definition of a(n):
A) direct exchange rate.
B) indirect exchange rate.
C) spot rate.
D) forward exchange rate.

Question

Quizplus · Accepted Answer

The forward exchange rate is the rate agreed upon today for the exchange of one currency for another at a future date, distinguishing it from spot rates, which are current exchange rates. Direct and indirect exchange rates refer to how the exchange rate is quoted, not to the timing of the exchange.

The Exchange Rate Quoted for Future Delivery of Foreign Currency