Distinguish between the spot and forward markets, for foreign
currencies. Why is it necessary to have...
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Distinguish between the spot and forward markets, for foreigncurrencies. Why is it necessary to have two markets rather thanone?-
What are the principal factors affecting the value of anyparticular foreign currency in the international exchangemarkets?-
Exactly what is meant by the phrase INTEREST RATEPARITY?
Who are the market participants in the foreign exchangemarkets?-
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Answer 1Spot MarketForward Markethandle only current or spot transactionsAffected transactions at prevailing rate onlyCurrency bought and sold to deliver at some future dateTransactions take place at forward rateFroward rate may different from spot rateIt is very important to have both
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