The Forward Exchange Rate

question 33

Multiple Choice

The forward exchange rate:

• A)Is the rate at which Foreign Exchange Basics dealers are willing to commit to buying or selling a currency in the future
• B)Is a synonymous term for the nominal exchange rate
• C)Is the same as the spot rate
• D)Is always above the spot rate since it carries greater risk

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Definitions:

Desirable Behaviour

Actions or reactions that are preferred or encouraged within a specific context due to their positive outcomes or alignment with set norms.

Reinforcing Value

The increase in likelihood of a behavior reoccurring, due to the positive outcomes or rewards associated with it.

Negative Reinforcement

A behavior modification technique that increases the likelihood of a behavior by removing or avoiding a negative outcome or stimulus.

Undesirable Consequence

Negative outcomes or punishments associated with a specific action or behavior, which function to decrease the likelihood of the behavior reoccurring.