Economics · International Trade
Match List-I with List-II: List-I (Concepts) (A) Foreign Exchange Swaps (B) Forward Transaction (C) Foreign Exchange Futures (D) Hedging List-II (Their Meaning) (i) Forward contract for standardized currency amounts traded on an organized market. (ii) Avoidance of foreign exchange risk. (iii) Spot sale + forward repurchase of the same currency. (iv) Agreement to buy/sell foreign currency at a future date at a pre-agreed rate.
- 1(A)-(iii), (B)-(iv), (C)-(i), (D)-(ii)✓
- 2(A)-(i), (B)-(ii), (C)-(iv), (D)-(iii)
- 3(A)-(i), (B)-(iii), (C)-(ii), (D)-(iv)
- 4(A)-(i), (B)-(ii), (C)-(iii), (D)-(iv)
Correct answer
(A)-(iii), (B)-(iv), (C)-(i), (D)-(ii)
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