As a Rule,when the Interest Rate of the Foreign Currency

question 79

Multiple Choice

As a rule,when the interest rate of the foreign currency is greater than the interest rate of the quoting currency,

• A)the outright forward rate is less than the spot exchange rate.
• B)the outright forward rate is more than the spot exchange rate.
• C)the currency will trade at a premium in the forward contract.
• D)none of the options

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Definitions:

Bile

A digestive fluid secreted by the liver and stored in the gallbladder, used in the digestion of lipids.

Liver

A large, vital organ in vertebrates that performs a wide variety of functions, including detoxification, protein synthesis, and production of biochemicals necessary for digestion.

Sigmoid Colon

The part of the large intestine closest to the rectum and anus, curved like an "S", involved in the digestive process.

Ascending Colon

The first part of the colon that ascends from the cecum on the right side of the abdomen, absorbing fluids and nutrients from digested foods.