If the Forward Exchange Rate Is Priced Higher Than the Spot

question 33

Multiple Choice

If the forward exchange rate is priced higher than the spot rate the currency is said to be trading at a:

• A) discount.
• B) gain.
• C) premium.
• D) loss.

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Definitions:

Erikson's Crises

A series of psychosocial challenges described by psychologist Erik Erikson, each stage requiring an individual to navigate and resolve psychological conflicts to develop healthily.

Identity Versus Identity Confusion

Erikson’s fifth stage of psychosocial development, in which an adolescent seeks to develop a coherent sense of self, including the role she or he is to play in society. Also called identity versus role confusion.

Intimacy Versus Isolation

Erikson’s sixth stage of psychosocial development, in which young adults either form strong, long-lasting bonds with friends and romantic partners or face a possible sense of isolation and self-absorption.

Generativity Versus Stagnation

Erikson’s seventh stage of psychosocial development, in which the middle-aged adult develops a concern with establishing, guiding, and influencing the next generation or else experiences stagnation (a sense of inactivity or lifelessness).