The Following Are the Prices in the Foreign Exchange Market

question 9

Multiple Choice

The following are the prices in the foreign exchange market between the Canadian dollar and another local currency (LC) . What was the discount or premium on 3-month forward for LC?

• A) 1.2980% premium
• B) 0.0325% premium
• C) 0.0325% discount
• D) 1.2980% discount

---

Definitions:

Social Facilitation

The tendency for an individual to perform differently, usually better, in the presence of others than when alone.

Situational Attributions

The process of explaining the behavior of others based on external factors or circumstances, rather than attributing their actions to internal characteristics.

Biological Trait

A characteristic or feature of an organism that is inherited from its parents and can be physically observed or measured.

External

Referring to or situated on the outside of something; coming or deriving from a source outside the subject affected.