In the forward market, the exchange rate is agreed on at the time of the currency contract, but payment is not made until the future delivery of the currency actually takes place.

A currency swap deal enables companies to insure themselves against foreign exchange risk.（ ）

The simultaneous purchase and sale of a given amount of foreign<br/>exchange for two different value dates is referred to as a ____ A: Fiscal barter B: Liquid trade C: Currency exchange D: Currency swap

If the forward exchange rate, defined as the domestic currency price<br/>of the foreign currency, is smaller than the spot exchange rate,<br/>there is a ( ). A: forward premium on the foreign currency. B: forward discount on the foreign currency. C: shortage of dollars. D: surplus of dollars.

The<br/>immediate (two-day) exchange of one currency for another is a A: forward<br/>transaction. B: spot<br/>transaction. C: money<br/>transaction. D: exchange<br/>transaction