Foreign currency forward rates aid traders by reducing uncertainty regarding future market fluctuations.

Question

Quizplus · Accepted Answer

Foreign currency forward rates are agreements to exchange currencies at a specified exchange rate on a future date. By using these rates, traders can hedge against potential market fluctuations and reduce uncertainty about future currency exchange rates, which aids them in making informed decisions. Thus, the statement is true.

Foreign Currency Forward Rates Aid Traders by Reducing Uncertainty Regarding