An Indonesian Importer Needs U

Multiple Choice

An Indonesian importer needs U.S.dollars to pay for the shipment that he has just received.He will have to purchase the dollars to pay for the shipment.He exchanges rupiah for U.S.dollars which he pays to the foreign exporter.The rate at which he buys US dollars in the market is known as the _____.

A) forward exchange rate
B) effective interest rate
C) spot exchange rate
D) internal forward rate
E) temporal rate