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