BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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banknotes
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transfer rate
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spot rate
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Detailed explanation-1: -The spot exchange rate is the current amount one currency will trade for another currency at a specific point in time. It is the open market price that a trader will pay to buy another currency.
Detailed explanation-2: -The nominal exchange rate is defined as the number of units of the domestic currency that can purchase a unit of a given foreign currency. The nominal effective exchange rate (NEER) is an unadjusted weighted average rate at which one country’s currency exchanges for a basket of multiple foreign currencies.
Detailed explanation-3: -In general, a spot rate refers to the current price or bond yield, while a forward rate refers to the price or yield for the same product or instrument at some point in the future. In commodities futures markets, a spot rate is the price for a commodity being traded immediately, or “on the spot".