When would an exporter commonly use an NDF?
A) when receiving THB in 1 month
B) when receiving HKD in 2 months
C) when receiving PHP in 2 bank business days
D) when receiving KRW in 3 months

Question

Quizplus · Accepted Answer

An NDF, or Non-Deliverable Forward, is commonly used by exporters when receiving a foreign currency in a future date, typically several months in advance. Therefore, choice D, which mentions receiving KRW in 3 months, is the best choice for when an exporter would commonly use an NDF. Choices A, B, and C do not specify a need to receive foreign currency in a future date or timeframe that would warrant the use of an NDF.

When Would an Exporter Commonly Use an NDF