The One-Year Forward Rate of the British Pound Is Quoted

question 52

Multiple Choice

The one-year forward rate of the British pound is quoted at $1.20, and the spot rate of the British pound is quoted at $1.23. The forward ____ is ____ percent.

• A) discount; 2.5
• B) discount; 2.4
• C) premium; 2.5
• D) premium; 2.4

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Definitions:

Satin Edge

A type of fabric finish where the edge is made with satin, giving it a smooth, glossy appearance.

Adaptation

Piaget’s term for adjustment to new information about the environment, achieved through processes of assimilation and accommodation.

Circular Reactions

Piaget’s term for processes by which an infant learns to reproduce desired occurrences originally discovered by chance.

Reflexes

Involuntary and immediate responses to specific stimuli, such as pulling a hand away from a hot surface, that are crucial for survival.