The forward market is:
A) a market that exists only in one place at one time.
B) when a person borrows to speculate in the market.
C) the purchases and sales of currencies for delivery at a later time-up to a year.
D) the rate of exchange quoted during the next business day.

Question

Quizplus · Accepted Answer

The forward market involves purchases and sales of currencies for delivery at a later time, typically up to a year. This is in contrast to the spot market, where currencies are exchanged immediately. Option A is incorrect as the forward market can exist in multiple locations, and option B is incorrect as borrowing to speculate is not necessarily specific to the forward market. Option D is also incorrect as the rate of exchange quoted in the forward market may not be specific to the next business day.

The Forward Market Is