In _________________,parties agree to rates at which currencies will be exchanged immediately.
A)spot markets
B)forward markets
C)equity markets
D)currency markets

Question

Quizplus · Accepted Answer

Spot markets are where immediate transactions take place, and parties agree to rates at which currencies will be exchanged on-the-spot. Forward markets involve agreements to exchange currencies at a future date, usually to hedge against potential currency fluctuations. Equity markets refer to markets where stocks and shares are traded, and currency markets are broader markets where currencies are bought and sold, including both spot and forward markets. Therefore, the most appropriate choice in this context is spot markets (option A).

In _________________,Parties Agree to Rates at Which Currencies Will Be