The 'spot rate' is:
A) the rate for delivery the next day of currencies to be exchanged.
B) the exchange rate for immediate delivery of currencies to be exchanged.
C) only used in relation to metals, that is, the spot metal price.
D) can never be used in translating the accounts of foreign operations.

Question

Quizplus · Accepted Answer

The spot rate refers to the exchange rate for immediate delivery of currencies to be exchanged. Option A is incorrect because spot rate doesn't necessarily mean next day delivery, it could be immediate delivery as well. Option C is incorrect because spot rate is not limited to metals only. Option D is incorrect because spot rate is commonly used in translating the accounts of foreign operations.

The 'Spot Rate' Is