A transaction that calls for the payment and receipt of the foreign exchange within two business days from the transaction date is a:

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A spot transaction is a type of foreign exchange transaction in which the exchange of currencies takes place within two business days from the transaction date. A forward transaction involves a set date in the future for the exchange of currencies, while an arbitrage transaction involves taking advantage of price differences between markets. A foreign discount with respect to the domestic currency is not a recognized type of foreign exchange transaction.

A Transaction That Calls for the Payment and Receipt of the Foreign