Question
Spot transaction
Answer :
Word Count : 247
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A spot transaction in international business finance refers to the purchase or sale of a foreign currency, commodity, or financial instrument for immediate delivery and settlement, typically within two business days. It is one of the most fundamental instruments in the foreign exchange market, allowing businesses and investors to convert one currency into another at the current market exchange rate, known as the spot rate. Spot transactions are widely used by multinational corporations to pay for imports, receive payment for exports, or manage short-term currency requirements. The settlement of a spot transaction is usually straightforward, involving
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