Which of the Following Statements Is Most Valid

question 24

Multiple Choice

Which of the following statements is most valid?

• A)The forward exchange rate is higher than the spot exchange rate if the foreign currency risk premium is positive.
• B)The currency that pays a higher interest rate trades at a premium in the forward exchange market.
• C)The currency that pays a higher interest rate trades at a discount in the forward exchange market.
• D)Whether the forward exchange rate is higher than the spot depends on the relative volatilities of interest rates in the two currencies.

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Definitions:

Vegan Diet

A diet that excludes all animal products, including meat, dairy, and eggs, focusing on plant-based foods.

Nutrients

Substances obtained from food that are essential for the maintenance of bodily functions and growth, including vitamins, minerals, carbohydrates, proteins, and fats.

Supplements

Products taken orally that contain dietary ingredients aimed at supplementing the diet, such as vitamins, minerals, herbs, or other nutrients.

Parenteral Nutrition

A method of feeding a person intravenously, bypassing the usual process of eating and digestion.