Answered

What are the three primary types of foreign exchange transactions?

A. Spot transactions, forward transactions, currency swaps
B. Spot transactions, forward discounts, currency swaps
C. Forward premiums, forward transactions, spot transactions
D. Forward transactions, currency hedging, spots



Answer :

GinnyAnswer

Final answer:

The three primary types of foreign exchange transactions are spot transactions, forward transactions, and currency swaps.


Explanation:

The three primary types of foreign exchange transactions are:

  1. Spot transactions: the immediate exchange of currencies at the current exchange rate.
  2. Forward transactions: agreements to exchange currencies at a future date and pre-set price.
  3. Currency swaps: exchanging one currency for another with a predetermined obligation to reverse the exchange at a later date.

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