A ______________ exchange occurs when two parties agree to exchange currency and execute the deal at some specific date in the future.

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Quizplus · Accepted Answer

A forward exchange is a transaction where two parties agree to an exchange of currency at a future date, at a predetermined exchange rate. This is different from a spot exchange, which is the immediate exchange of currency at the current market rate. A hedge is a strategy to reduce risk, and a futures exchange involves the buying and selling of contracts for future delivery of a commodity or financial instrument, rather than actual exchange of currency. A reverse exchange is not a common term in finance.

A ______________ Exchange Occurs When Two Parties Agree to Exchange