Which of the following statements is true?
A)Foreign exchange rate is the exchange rate agreed to today for future delivery of a currency.
B)Future exchange rate is the exchange rate agreed to today for future delivery of a currency.
C)Forward exchange rate is the exchange rate agreed to today for future delivery of a currency.
D)Future exchange rate is the exchange rate agreed to today for future delivery of a currency futures contract.

Question

Quizplus · Accepted Answer

The statement that accurately defines the exchange rate agreed to today for future delivery of a currency is the forward exchange rate. A future exchange rate may refer to a rate for a delivery in the future, but it specifically refers to a rate agreed upon for a currency futures contract, which is a specific type of financial instrument with its own nuances. Therefore, option C is the correct statement.

Which of the Following Statements Is True