Rates for currency exchange quoted for 30,90 or 180 days into the future are referred to as ______________.
A)forward exchange rates
B)foreign exchange quotes
C)united trade rates
D)generic exchange quotes

Question

Quizplus · Accepted Answer

Rates for currency exchange quoted for a certain period into the future are called forward exchange rates. These rates are used to hedge against fluctuations in exchange rates and manage currency risk. The other options, foreign exchange quotes and generic exchange quotes, are not specific enough and do not refer to rates quoted for a certain period. United trade rates are not a commonly used term in currency exchange.

Rates for Currency Exchange Quoted for 30,90 or 180 Days