One advantage of the forward exchange market is:
A) That no buying/selling of the currency is needed until a specified date in the future.
B) The use of fixed contracts.
C) The initial deposit allows for further leveraging.
D) That contracts deal only in small amounts.

Question

Quizplus · Accepted Answer

One advantage of the forward exchange market is that no buying/selling of the currency is needed until a specified date in the future. This allows businesses to lock in an exchange rate for a future transaction, which can provide protection against potential currency fluctuations.

One Advantage of the Forward Exchange Market Is