Identification.

1. A written promise made by an IMPORTER'S bank to an EXPORTER to pay for merchandise
2. The relationship between the values of two currencies
3. The possibility of experiencing a drop in revenue or increase in cost in an international transaction due to a change in foreign exchange rates.
4. The relationship between two foreign currencies expressed in terms of a third currency
5. An instrument which may be used to protect against foreign exchange risk
6. A rate that reflects the future value of a currency based on expectations.
7. The rate at which the currency is traded for immediate delivers. it is the existing cash price.