The One-Year Forward Rate of the British Pound Is Quoted

question 55

Multiple Choice

The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. The forward ____ is ____ percent.

• A) discount; 1.9
• B) discount; 1.8
• C) premium; 1.9
• D) premium; 1.8

---

Definitions:

Terminal Electron Acceptor

A compound that receives or accepts an electron during cellular respiration or photosynthesis, allowing for the process of energy generation to conclude.

Oxygen

A chemical element (O) essential for respiration in most living organisms and a critical component of water and most organic compounds.

Lactic Acid Fermentation

A metabolic process by which glucose and other six-carbon sugars are converted into cellular energy and the metabolite lactate, which occurs in some bacteria and animal cells, such as muscle cells.

Final Electron Acceptor

A molecule that accepts electrons at the end of an electron transport chain, completing the process of electron transport and energy production.