If the Spot Rate Between the U

question 49

Multiple Choice

If the spot rate between the U.S. dollar and the Brazilian real is $1 = 2.0895 real and the 3-month forward rate is $1 = 2.1725 real, is the forward real selling at a discount or a premium?

• A) Discount
• B) Premium
• C) Unable to determine with the cross-rates

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Definitions:

Civil Rights Act

Legislation, particularly that enacted in the USA in 1964, aimed at ending discrimination based on race, color, religion, sex, or national origin.

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Milieu Therapy

A therapeutic approach that uses the social environment of a patient, such as a psychiatric hospital or community, to promote healing and change.

Leucotomy

A now largely obsolete surgical procedure involving the cutting of white matter tracts in the brain, used historically to treat severe mental disorders.