If a Currency's Forward Rate Is Higher Than Its Spot

question 175

True/False

If a currency's forward rate is higher than its spot rate, the currency is trading at a discount.

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Definitions:

Political Orientation

An individual's or group's predisposition towards particular political beliefs, ideologies, or affiliations.

Schooling

The process of receiving education in an institutional setting, like a school, where academic skills and knowledge are systematically taught.

Conservative Tide

Refers to a period in political history characterized by a shift towards conservative values and policies, often marked by reduced government intervention in the economy and a focus on traditional social norms.

Liberals

Refers to individuals or political groups advocating for policies that prioritize liberty, equality, and consent of the governed, often supporting government intervention to achieve social justice.