Name some instruments for containing risk in foreign exchange transactions.
CS Professional · Banking - Law and Practice · PYQS · December 2021
Name some instruments for containing risk in foreign exchange transactions.
Answer & Explanation:
Foreign Exchange Transactions refers to the sale and purchase of foreign currencies. Simply, the foreign exchange transaction is an agreement of exchange of currencies of one country for another at an agreed exchange rate on a definite date. Some of the instruments for containing risk in foreign exchange transactions are: Exchange-traded fund, Forward, Future, Option, Spot, Swap etc.
Topics: Foreign Exchange Risk Management
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