Economics · International Finance
An Indian importer enters into a contract today to purchase US dollars at a fixed exchange rate after three months to hedge against adverse currency fluctuations. This transaction is best described as a:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Forward exchange contract✓
- 2Arbitrage operation
- 3Spot market transaction
- 4Currency swap
Correct answer
Forward exchange contract
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