If an Investor Can Obtain More of a Foreign Currency

question 47

True/False

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

---

Definitions:

Mexico

A country in the southern portion of North America known for its rich history, diverse cultures, and significant economic activities.

European Union

A political and economic union of 27 member states located primarily in Europe, aimed at facilitating economic cooperation, trade, and policy harmonization.

Competitive Implications

The potential impacts on an organization's position in the market relative to others, as a result of its actions or changes in the environment.

Free Flow

The unimpeded movement or exchange of information, resources, or goods in an environment without restrictive regulations.