If a Foreign Currency Is Quoted in American Terms (The

question 22

Multiple Choice

If a foreign currency is quoted in American terms (the direct quote) and the forward rate for a foreign currency is less than the spot rate, the foreign currency is selling at a ________.

• A)forward premium
• B)backward discount
• C)backward premium
• D)forward discount

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Definitions:

Warfare

The engagement in or the activities involved in war or conflict, including strategies, tactics, and combat operations.

Great Lakes Region

A geographical area in North America surrounding the Great Lakes, which includes parts of the United States and Canada and is known for its significant natural resources and industrial activity.

Violence

Physical force exerted for the purpose of causing damage or harm to people or property.

Disease

A condition that negatively affects the normal function of the mind or body, often characterized by specific signs and symptoms.