Which of the Following Statements Is Correct

question 21

Multiple Choice

Which of the following statements is correct?

• A)A currency with higher interest rate will sell at a forward discount.
• B)A currency with higher interest rate will sell at a forward premium.
• C)A currency with higher interest rate will have a higher spot rate.
• D)A currency with higher interest rates will have a lower spot rate.

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Definitions:

Facial Stress

Tension or strain manifested through facial expressions, often as a result of emotional or physical stress.

Ekman

Refers to Paul Ekman, a psychologist known for his work on the universality of facial expressions and emotions.

Kinesic

Relating to kinesics, the study of body motion or body behavior as a form of non-verbal communication.

Communication Mismatch

A disconnect or failure in the exchange of information between parties, leading to misunderstandings.