Which of the Following Describes the Way the Forward Price

question 13

Multiple Choice

Which of the following describes the way the forward price of a foreign currency is quoted?

• A) The number of U.S. dollars per unit of the foreign currency
• B) The number of the foreign currency per U.S. dollar
• C) Some forward prices are always quoted as the number of U.S. dollars per unit of the foreign currency and some are always quoted the other way round
• D) There are no quotation conventions for forward prices

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Definitions:

Dependable Currency

A currency that maintains stable value and is widely accepted for financial transactions, contributing to economic stability.

Union Pacific Railroad

One of the largest railroad companies in the United States, historically significant for completing the transcontinental railroad in 1869.

Central Pacific Railroad

A key part of the transcontinental railroad in the United States, completed in the 1860s, linking the West Coast at San Francisco Bay with the existing Eastern U.S. rail network.

Federal Government

The national government of the United States, created by the Constitution, that encompasses a system of governmental institutions and practices.