Which of the Following Statements Is Correct

question 14

Multiple Choice

Which of the following statements is correct?

• A) A currency with a higher interest rate will sell at a forward premium.
• B) A currency with a higher interest rate will sell at a forward discount.
• C) A currency with a higher interest rate will have a higher spot rate.
• D) A currency with a higher interest rate will have a lower spot rate.

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Definitions:

Kotter

Refers to Dr. John Kotter, a professor and expert in change management and leadership, known for his 8-step change model.

Order And Consistency

The principle of maintaining a structured and stable environment in which procedures and norms are clearly defined and consistently applied.

Change And Structure

The dynamic process of implementing alterations in an organization's framework, operations, or culture to adapt to internal and external demands.

Elected Officials

Individuals who have been chosen through a voting process to hold public office and represent the interests of their constituents.