If payment on a transaction is to be made immediately, the purchaser has no choice other than to buy foreign exchange on:
A)the spot market.
B)the forward market.
C)a hedge.
D)a future date invoice.
E)an exchange rate pass-through.

Question

Quizplus · Accepted Answer

The spot market is where financial instruments, including currencies, are traded for immediate delivery. In the context of foreign exchange, buying on the spot market means exchanging currencies at the current market rate for immediate payment, which aligns with the requirement for immediate transaction payment.

If Payment on a Transaction Is to Be Made Immediately