When an FX Dealer Calculates a Forward Exchange Rate for NZD/JPY

question 91

True/False

When an FX dealer calculates a forward exchange rate for NZD/JPY they must adjust both interest rates to allow for the different quotation rates between Japan and New Zealand.

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Definitions:

Potential Lenders

Entities or individuals who may provide loans or credit but have not yet agreed to do so.

Equal Credit Opportunity Act

A U.S. law that aims to make it illegal for creditors to discriminate against applicants based on race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.

Extend Credit

Involves offering a loan or allowing goods or services to be purchased now with the agreement to pay later.

Incomes Below

Refers to earnings that fall beneath a specified benchmark, often used in discussions about poverty levels or eligibility for financial assistance.