1. A(n) ______ allows traders to hedge exchange rate risks in the Forex market, by fixing an exchange rate today for a future transaction.
a. securities trade
b. spot exchange contract
c. options trade
d. investment in a foreign asset
e. forward exchange contract
2. ______________ is a mechanism whereby a company can sell its invoice(s) to a third party provider called a ______, that purchases the invoice(s), providing immediate but discounted payment against the amount due under the invoice.
a. Factoring; factor
b. Discounting; discounter
c. Forwarding; forward contractor
d. Hedging; hedger