If a Currency Is Selling at a Forward Premium It

question 125

Multiple Choice

If a currency is selling at a forward premium it most likely means that the foreign-exchange market believes that the ________.

• A) currency will depreciate over time
• B) country's economy is weak
• C) currency will appreciate over time
• D) country's economy is strong

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Definitions:

Wage Increase

A rise in the amount of money workers are paid per unit of time.

Discrimination Complaint

A formal grievance filed by an individual alleging unfair treatment or inequality based on certain protected characteristics.

Equilibrium Wage

The wage rate at which the quantity of labor demanded equals the quantity of labor supplied.

After-School Tutoring

educational or supplementary instruction provided to students outside of regular school hours to improve their knowledge or skills.