If the Forward Rate of a Foreign Currency ____ the Existing

question 38

Multiple Choice

If the forward rate of a foreign currency ____ the existing spot rate, the forward rate will exhibit a ____.

• A) exceeds; discount
• B) is below; premium
• C) is below; discount
• D) A and B

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Definitions:

Vision

Vision is the ability to perceive the environment through light in the visible spectrum that is detected by the eyes and interpreted by the brain.

Broca Area

A region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.

Sensory Speech Area

A region in the brain, typically in the temporal lobe, involved in the processing and understanding of spoken language.

Chemoreceptors

Sensory receptors that respond to chemical stimuli, involved in taste, smell, and internal body conditions like oxygen and carbon dioxide levels.