Forward exchange contracts have a different focus than futures exchange contracts,in that they allow a purchaser to pay a preestablished rate for a currency in the future.

Question

Quizplus · Accepted Answer

This statement is true. Forward exchange contracts enable a buyer to lock in a specific exchange rate for a future transaction, whereas futures exchange contracts involve the trading of standard contracts with predetermined terms for the purchase or sale of an asset, including currency.

Forward Exchange Contracts Have a Different Focus Than Futures Exchange