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:

Mayor

The elected head of a city, town, or other municipality.

Capitalization

The practice of writing certain words or letters in uppercase for emphasis or to adhere to grammatical rules.

Superior

Someone or something that is higher in rank, status, or quality compared to others.

Lakes

Large, naturally occurring bodies of fresh or saltwater, surrounded by land, not part of the ocean.