What year did the Chicago Mercantile Exchange debut foreign currency futures based on a new floating exchange rate system?a.1972b.1982c.1985d.1974
Question
What year did the Chicago Mercantile Exchange debut foreign currency futures based on a new floating exchange rate system?
a. 1972
b. 1982
c. 1985
d. 1974
Solution
The Chicago Mercantile Exchange (CME) debuted foreign currency futures on April 21, 1972. This event marked a significant development in the trading of currencies as it was based on the newly established floating exchange rate system that followed the collapse of the Bretton Woods system. The ability to trade futures contracts in foreign currencies allowed traders and businesses to hedge against potential fluctuations in currency values, leading to a more dynamic and liquid market for foreign exchange.
Given the options:
a. 1972
b. 1982
c. 1985
d. 1974
The correct answer is a. 1972.
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