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:

Stimulus

Any event or situation that evokes a response from an organism or system.

Emotion

A multifaceted mental state that encompasses a person's personal feelings, physical reactions, and actions or expressions.

Autonomic Nervous System

The autonomic nervous system is a part of the nervous system responsible for controlling involuntary bodily functions, such as heart rate, digestion, and breathing.

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood glucose; plays roles in metabolism and immune response.