Answer:
A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The exchange rate at which the transaction is done is called the spot exchange rate. The standard settlement timeframe for foreign exchange spot transactions is T + 2 days; i.e., two business days from the trade date.
Question from JAIIB - AFB -Accounting and Finance for Bankers
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