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Distinguish between the spot and forward markets, for foreign currencies. Why is it necessary to have...

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Finance

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?-

Answer & Explanation Solved by verified expert
3.8 Ratings (637 Votes)
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    See Answer
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