Which of the Following Statements Is Correct

question 21

Multiple Choice

Which of the following statements is correct?

• A)A currency with higher interest rate will sell at a forward discount.
• B)A currency with higher interest rate will sell at a forward premium.
• C)A currency with higher interest rate will have a higher spot rate.
• D)A currency with higher interest rates will have a lower spot rate.

---

Definitions:

Federal Government

The national government of the United States, created by the Constitution, which divides powers between the executive, legislative, and judicial branches.

Big Business

Large-scale corporate enterprises characterized by significant market power, vast resources, and complex organizational structures.

American Way of Life

A phrase that refers to the lifestyle and cultural norms of people living in the United States, often emphasizing freedom, democracy, and economic opportunity.

Communist Party of America

A political party in the United States that advocates for the principles of communism, emphasizing the collective ownership of means of production.