Forward Rates Are Always Higher Than Spot Rates

question 52

True/False

Forward rates are always higher than spot rates.

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Definitions:

Misfiring Spark Plugs

An engine condition where one or more spark plugs fail to ignite the fuel-air mixture in the cylinder, leading to inefficient engine performance.

Eight-Cylinder

Referring to an engine with eight cylinders, typically known for providing a higher level of performance and power.

Automobile Engine

A machine designed to convert various forms of energy into mechanical force and motion to power an automobile.

Probability

An indicator of the probability of an event happening, expressed as a numeric value ranging from 0 to 1, with 0 meaning the event cannot happen and 1 meaning the event is certain to happen.