Economics B A-Level
Forward contract
What Forward contract means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Forward contract
Check what you remember
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Reference: Pearson Edexcel
An agreement that allows a firm to lock in a specific exchange rate for a future date, providing certainty over costs or revenues.
Topics that use Forward contract
- Risks and uncertainty (Pearson Edexcel A-Level)
Related terms
- Business resilience
- Contingency planning
- Exchange rate risk
- Financial stability
- Risk
- Supply-side shocks
- Uncertainty
- Demand-side shocks
Using Forward contract in the exam
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