Economics · Economy
Consider the following statements regarding the Indian Foreign Exchange Market and derivative instruments: I. The foreign exchange market in India is a decentralized, Over-the-Counter (OTC) market where the RBI intervenes to ensure orderly conditions without targeting a specific exchange rate level. II. A currency swap contract is a derivative instrument that involves the exchange of principal and/or interest in one currency for the same in another currency, regulated under the Foreign Exchange Management Act (FEMA). III. An Outright Forward Contract is an agreement to exchange two currencies on a future date that must be settled exactly on the same business day as a spot transaction. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I, II and III
- 2Only I and III
- 3Only II and III
- 4Only I and II✓
Correct answer
Only I and II
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