The essential feature of a _______ is that it immediately fixed the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date ?
Correct answer: A. forward contract
- A. forward contract
- B. spot contract
- C. money contract
- D. bid contract
Explanation
A forward contract fixes today the exchange rate for delivery of specified currencies at a future date. A spot contract, by contrast, settles almost immediately.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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