The exchange rate at which people are willing to sell a currency at one month, three months or one year into the future is called a _____.

Question

Quizplus · Accepted Answer

The forward exchange rate is the rate at which a currency can be exchanged for another at a future date, as agreed upon today. This contrasts with the spot price, which is the current exchange rate. Arbitrage and hedged rates involve different concepts related to taking advantage of price differences or protecting against exchange rate fluctuations, respectively.

The Exchange Rate at Which People Are Willing to Sell