GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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for future delivery
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for immediate delivery
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for delivery at a particular spot in future
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none of the above
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Detailed explanation-1: -What Is a Spot Exchange Rate? A spot exchange rate is the current price at which a person could exchange one currency for another, for delivery on the earliest possible value date. Cash delivery for spot currency transactions is usually the standard settlement date of two business days after the transaction date (T+2).
Detailed explanation-2: -Spot rates are the current exchange rates at which specific currencies can be bought or sold on currency exchange markets. In plain English, they are the “right now” rate for any given currency. If you choose to make an exchange immediately, your chosen currencies will be exchanged at the current spot rate.
Detailed explanation-3: -The spot exchange rate is the rate today for exchanging one currency for another for immediate delivery. The spot exchange rate is the amount one currency will trade for another today. In other words, it’s the price a person would have to pay in one currency to buy another currency today.