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:

Judicial Circuits

Geographic areas in which courts have jurisdiction; in the U.S., these can refer to the regional circuits of the Federal Courts of Appeal.

Congress

The national legislative body of the United States, consisting of two houses: the Senate and the House of Representatives.

Court of Appeals

An intermediate level of the judiciary system where decisions from lower courts can be contested and reviewed.

Quorum

The minimum number of members required to be present at a meeting to lawfully conduct business.