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.

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Definitions:

Atomic Mass

The mass of an atom expressed in atomic mass units (amu), essentially equivalent to the number of protons and neutrons in the nucleus.

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, with electrons orbiting the nucleus.

Amu

Atomic Mass Unit, a standard unit of mass that quantifies mass on an atomic or molecular scale.

Valence Electrons

Electrons in the outermost shell of an atom that are available for bonding with other atoms.