Forward and Spot Exchange Rates

question 20

Multiple Choice

Forward and spot exchange rates

• A) are necessarily equal.
• B) do not move closely together.
• C) are always such that the forward exchange rate is higher.
• D) do move closely together, but are not necessarily equal.
• E) are unrelated to the value date.

---

Definitions:

Part-time Tutors

Individuals who provide educational assistance and instruction on certain subjects or skills but do not work full-time hours.

Commitment

The act of dedicating oneself to a cause or activity or the state of being in a long-term engagement.

Mere Exposure Effect

is a psychological phenomenon wherein individuals develop a preference for things or people they are frequently exposed to, even if there is no conscious recognition of familiarity.

Skeptical Customers

Consumers who approach products or services with doubt and require convincing evidence before making a purchase.