A _________ is the rate at which a bank is willing to exchange one currency for another at some specified future date.

Question

Quizplus · Accepted Answer

A forward rate is a rate at which a bank is willing to exchange one currency for another at some specified future date. This rate is agreed upon at the time of the transaction and is used to hedge against potential losses due to changes in exchange rates. Contract rate refers to the rate agreed upon in a contract, which may or may not be a forward rate. Fixed rate is a rate that remains constant over a period of time and is not necessarily related to exchange rates.

A _________ Is the Rate at Which a Bank Is