If a Currency's Forward Rate Exhibits a Premium, That Currency

question 83

True/False

If a currency's forward rate exhibits a premium, that currency is forced to depreciate.

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Definitions:

Centigrade

A scale of temperature in which water freezes at 0 degrees and boils at 100 degrees under standard conditions.

Hemiplegia

Paralysis of one side of the body, typically resulting from damage to the brain or spinal cord.

Hemi-

Refers to a prefix meaning half or partial, often used in medical and scientific terminology to describe something that affects one side or part.

Hypertrophy

An increase in the size of an organ or tissue through the enlargement of its cells.