If a Forward Discount Is Prevalent in U

question 102

Multiple Choice

If a forward discount is prevalent in U.S. dollars to Swiss francs,

• A) the forward rate is lower than the spot rate.
• B) the forward rate is higher than the spot rate.
• C) markets will expect the Swiss Franc to appreciate relative to the dollar.
• D) the forward rate is lower than the spot rate and markets expect the Swiss franc to appreciate relative to the dollar.

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Definitions:

Permanently Assigned

The status of being indefinitely designated to a particular task, role, or position within an organization.

Differentiated Departments

Units within an organization that are specialized and distinct from each other in their functions, roles, and objectives.

Liaison Roles

Positions or duties in which an individual is responsible for facilitating communication and coordination between different groups or departments within an organization.

Task Forces

Temporary groups set up to solve coordination problems across several departments.