What rates are exchange rates for the delivery of a currency at a specific point in the future?

Question

Quizplus · Accepted Answer

Forward exchange rates are the rates at which two parties agree to exchange currencies at a future date, typically more than two business days ahead. It is a contract made between two parties to buy or sell a currency at a competitive rate at a fixed date in the future. Therefore, Forward rates are the exchange rates for the delivery of currency at a specific point in the future.

What Rates Are Exchange Rates for the Delivery of a Currency