The rate at which a one currency may be exchanged for another immediately (= 2 day delivery) is the:

A) futures rate.
B) forward rate.
C) spot rate.
D) today rate.

Question

The rate at which a one currency may be exchanged for another immediately (= 2 day delivery) is the:A) futures rate.B) forward rate.C) spot rate.D) today rate.

Shanelly Gutierrez · Accepted Answer

Final Answer : C, Explanation :  The spot rate refers to the rate at which a currency can be exchanged for another immediately or within two business days at the latest. The futures rate refers to an agreed-upon rate for the exchange of currency at a specified date in the future, while the forward rate is a type of futures rate that is specifically based on the spot rate and adjusted for interest rates. The today rate is not a commonly used term in the context of currency exchange rates.

The rate at which a one currency may be exchanged for another immediately (= 2 day delivery) is the:

A) futures rate.
B) forward rate.
C) spot rate.
D) today rate.

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