____ allow participants to buy and sell currencies now for future delivery.
A) Swaps
B) Direct transactions
C) Spot transactions
D) Forward transactions

Question

Quizplus · Accepted Answer

Forward transactions allow participants to buy and sell currencies now for future delivery, typically at an agreed-upon exchange rate. Swaps involve exchanging one currency for another and then exchanging them back at a later date, while spot transactions involve buying or selling currencies for immediate delivery. Direct transactions do not involve any intermediaries such as banks or brokers. Forward transactions allow participants to buy and sell currencies now for future delivery at an agreed-upon exchange rate.

____ Allow Participants to Buy and Sell Currencies Now for Future