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:

Stanford-Binet Intelligence Scale

A standardized test that assesses intelligence and cognitive abilities in individuals, widely used in educational settings for diagnostics and placement.

Wechsler Scale

A set of standardized tests used to assess the intelligence of children and adults, taking both verbal and performance IQ into account.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often leading to a speedy decision but not always to the best outcome.

Infinite Creativity

The boundless capacity to generate novel and original ideas, concepts, or artistic expressions.