Asked by Rebika Basnet on May 01, 2024
Verified
Spot rates imply delivery of the foreign currency immediately or "on the spot." In reality, however, it usually takes about three hours for delivery.
Spot Rates
The current price in the marketplace at which a particular asset can be bought or sold for immediate delivery.
Foreign Currency
Currency used in a country other than one's own, representing the money of another country.
- Recognize the significance of spot and forward exchange rates in international finance.
Verified Answer
AM
Abdul MuktadirMay 06, 2024
Final Answer :
False
Explanation :
The statement is incorrect. Spot rates imply delivery of the foreign currency immediately or "on the spot," which means that the delivery should happen instantly, not in three hours.
Learning Objectives
- Recognize the significance of spot and forward exchange rates in international finance.