If an Investor Can Obtain More of a Euro for a Dollar

question 47

True/False

If an investor can obtain more of a Euro for a Dollar in the forward market than in the spot market, then Euro is said to be selling at a discount to the spot rate.

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Definitions:

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.

Increased

A term indicating that a numerical value, quantity, or financial metric has gone up from a previous measurement.

Account

Represents a specific financial record in bookkeeping that tracks the financial transactions of a particular aspect, such as expenses or revenues.

Asset

Resources owned by a company from which future economic benefits are expected to flow to the entity.