In the Forward Market,the Selling of a Currency at a Spot

question 9

Multiple Choice

In the forward market,the selling of a currency at a spot rate that is more than the forward rate is called _____.

• A) gaming the exchange rate
• B) cheating the bid-ask spread
• C) forward rate speculation
• D) selling at a premium
• E) selling at a discount

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Definitions:

Contract Language

The specific phrasing and terminology used in contracts to clearly define rights, responsibilities, obligations, and other agreements between parties.

Usury Statute

Laws that set maximum interest rates that can be charged on loans to prevent predatory lending practices.

Maximum Rate

The highest permissible interest rate or charge on a loan as defined by law or regulation.

Illegal Bet

A wager placed in violation of laws or regulations governing gambling activities.