If a Dollar Will Buy Fewer Units of a Foreign

question 43

True/False

If a dollar will buy fewer units of a foreign currency in the forward market than in the spot market, then the forward currency is said to be selling at a premium to the spot rate.

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Definitions:

Technologies

Tools, systems, or methods that apply scientific knowledge for practical purposes, especially in industry.

Reasonable Person

A standard of care used to measure acts of negligence.

Duty of Care

A legal obligation which requires a person to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Foreseen

Anticipated or predicted as likely to happen in the future.