Later this week, you are traveling from the U.S.to Canada for a week's vacation.This morning, you exchanged some U.S.dollars for Canadian dollars in preparation for that trip.Which one of the following best describes this exchange?

Question

Quizplus · Accepted Answer

A spot trade involves the immediate exchange of currencies at the current exchange rate. This fits the scenario described in the question, where the traveler exchanged U.S. dollars for Canadian dollars in preparation for their upcoming trip. Forward trade, arbitrage transaction, cross-rate exchange, and Eurocurrency transaction all involve more complex financial instruments or strategies that do not apply to a simple currency exchange.

Later This Week, You Are Traveling from the U