Forward and Spot Exchange Rates

question 65

Multiple Choice

Forward and spot exchange rates

• A) are necessarily equal.
• B) do not move closely together.
• C) are always such that the forward exchange rate is higher.
• D) move closely together and are equal on the value date.
• E) are unrelated to the value date.

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Definitions:

Surplus

The amount by which production, resources, or inventory exceeds the actual demand or use.

Labor

The human effort, both physical and mental, used in the production process to create goods or provide services.

Labor Unions

Organizations representing workers in various industries, advocating for better wages, working conditions, and benefits for their members.

Non-Unionized Industries

Sectors of the economy where the workforce is not part of a labor union or covered by a collective bargaining agreement.