If a Foreign Currency Is Quoted in American Terms (The

question 46

Multiple Choice

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

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

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Definitions:

Primary Reinforcer

A stimulus that is inherently rewarding and satisfies a biological need, leading to an increase in the behavior that preceded it.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer.

Operant Behavior

Behavior that is controlled by its consequences, including rewards and punishments, in the context of learning.

Conditioned Reinforcer

A stimulus that acquires the ability to reinforce behavior through its link to a primary reinforcer.