If you are an importer of goods and you need to make payment for the purchase of inventory before the close of business today,which of the below is the correct term for the exchange rate that you will use?

Question

Quizplus · Accepted Answer

The spot exchange rate is the current exchange rate at which one currency can be traded for another currency in the spot market. This is the appropriate rate to use when making a payment for immediate delivery of goods, as in the scenario given. The other options, indirect rate, direct rate, and forward rate, are not relevant for immediate payment.

If You Are an Importer of Goods and You Need