What is the most common type of financial forward agreement?
A)forward agreements in foreign currencies
B)forward agreements in domestic goods
C)forward agreements in federal funds
D)forward agreements in both domestic goods and foreign currency

Question

Quizplus · Accepted Answer

Forward agreements in foreign currencies are the most common type of financial forward agreement. These agreements allow parties to lock in a future exchange rate for a currency transaction, which can help manage currency risk. While forward agreements in domestic goods and federal funds are also used, they are less common than forward agreements in foreign currencies.

What Is the Most Common Type of Financial Forward Agreement