What is the exchange rate in effect at the date of the transaction called?
A)Forward rate.
B)Closing rate.
C)Settlement rate.
D)Spot rate.

Question

Quizplus · Accepted Answer

The exchange rate in effect at the date of transaction is known as the spot rate. It is the current market price of a currency at which it can be bought or sold for immediate delivery. The other options, namely forward rate, closing rate, and settlement rate, are all different from the spot rate and refer to exchange rates for future contracts or past transactions.

What Is the Exchange Rate in Effect at the Date