Which of the following statements is incorrect?
A) Forward contracts are contracts typically negotiated with a commercial bank that allow the purchase or sale of a specified amount of a particular foreign currency at a specified exchange rate on a specified future date.
B) The forward market is located in New York City.
C) Many of the commercial banks that offer foreign exchange on a spot basis also offer forward transactions for the widely traded currencies.
D) Forward contracts can hedge a corporation's risk that a currency's value may appreciate over time.

Question

Quizplus · Accepted Answer

The forward market is not located in a specific physical location like a stock exchange. It is an over-the-counter market, meaning that transactions take place directly between the buyer and seller and are not traded on a centralized exchange.

Which of the Following Statements Is Incorrect