What is meant by the forward market

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Problem

1. What is meant by the foreign-exchange market? Where is it located?

2. What is meant by the forward market? How does this differ from the spot market?

3. The supply and demand for foreign exchange are considered to be derived schedules. Explain.

4. Explain why exchange-rate quotations stated in different financial centers tend to be consistent with one another.

5. Who are the participants in the forward exchange market? What advantages does this market afford these participants?

Reference no: EM131899975

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