Purchasing a foreign currency contract from a bank at a future rate is an example of a transaction in the:

1. A forward or future market involves contracts promising to pay and deliver goods at some future date. 2. Buying a foreign currency contract at a future rate is the textbook example of such a transaction. 3. A spot market would require payment immediately or within a short span, so it is ruled out. 4. Hence the forward market is correct. _Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 4 Unit I "Meaning and Types of Markets", p.3_