ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commercial transactions in the spot market are often completed electronically, with banks or other financial institutions serving as intermediaries. The exchange rate at the time determines the amount of funds necessary for the transaction.
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Spot Market Decentralize
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Spot Market Structure
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Spot Market Remittance
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Spot Market Infrastructure
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Explanation:
Detailed explanation-1: -What Is a Spot Trade? A spot trade, also known as a spot transaction, refers to the purchase or sale of a foreign currency, financial instrument, or commodity for instant delivery on a specified spot date.
Detailed explanation-2: -A spot market is where spot commodities or other assets like currencies are traded for immediate delivery for cash.
Detailed explanation-3: -It is the interplay of the forces of demand and supply that determines the exchange rate between two currencies in a floating rate regime. The exchange rate between, say, the rupee and US dollar depends upon the demand for US dollars and the supply of US dollars in the Indian foreign exchange market.
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