Assuming the 30-Day Forward Exchange Rate Were $1 = ¥130

question 87

Multiple Choice

Assuming the 30-day forward exchange rate were $1 = ¥130 and the spot exchange rate were $1 = ¥120, the dollar is selling at a _____ on the 30-day forward market.

• A) premium
• B) margin
• C) discount
• D) subsidy

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Definitions:

The Congo

A region in Central Africa which is home to the Congo River and covers several countries, prominently the Democratic Republic of the Congo and the Republic of the Congo.

Control

The power to influence or direct people's behavior or the course of events.

Disenfranchised

Refers to individuals or groups who are deprived of the right to vote or other rights normally available to members of a society.

Poll Taxes

Fees levied as a precondition for voting, historically used in the United States to disenfranchise African American and poor white voters.