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:

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including both natural and built contexts.

Individualistic Cultures

Societies that value independence, self-expression, and the personal goals of the individual over group goals.

Research

A methodical exploration and review of materials and sources for the purpose of uncovering truths and forming new conclusions.

Personality

The assembly of various attributes or characteristics that constitute a person's unique character.