Which of the Following Is NOT True Regarding Nondeliverable Forward

question 67

Multiple Choice

Which of the following is NOT true regarding nondeliverable forward (NDF) contracts?

• A) NDFs are used primarily for emerging market currencies.
• B) Pricing of NDFs reflects basic interest rate differentials plus an additional premium charged for dollar settlement.
• C) NDFs can only be traded by central banks.
• D) All of the above are true.

---

Definitions:

Grand Mal Seizure

A type of seizure characterized by violent muscle contractions and loss of consciousness, often associated with epilepsy.

Seizure Disorder

A condition characterized by the occurrence of seizures, affecting the brain's electrical activity.

Shopping Mall

A large indoor complex containing a variety of stores, restaurants, and other business establishments in one space.

Hospice Care

Specialized care designed to provide support and comfort to patients in the last phase of a terminal illness, focusing on pain management and quality of life.