If a Dollar Will Buy Fewer Units of a Foreign

question 49

True/False

If a dollar will buy fewer units of a foreign currency in the forward market than in the spot market,then the foreign currency is said to be selling at a premium to the spot rate.

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Definitions:

Competent

Having the necessary ability, knowledge, or skill to perform a task effectively or to make legally binding decisions.

Adequate Market

An economic concept where there is a sufficient number of buyers and sellers for a particular product or service.

Common Law

A legal system based on precedent and judicial decisions, rather than written laws or statutes, primarily in the UK and former British colonies.

Objectively Inferred

Conclusions or deductions made based on objective facts or evidence, without influence from personal feelings or perspectives.