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:

Governor Cut-Out

A mechanism designed to limit the speed of a vehicle or machine by preventing fuel delivery or ignition at a preset speed.

Spring Brake Chamber

A component in air brake systems of vehicles that uses spring force to apply the brakes, particularly for parking or emergency purposes.

Braking Force

The force applied by a braking system to slow down or stop a vehicle.

Pneumatic Force

The power or force exerted by compressed air in various mechanical applications.