If $1 Bought More Yen with a Spot Exchange Than

question 54

True/False

If $1 bought more yen with a spot exchange than with a 30-day forward exchange, it indicates the dollar is expected to depreciate against the yen in the next 30 days. When this occurs, we say the dollar is selling at a premium on the 30-day forward market.

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Definitions:

School

An institution for educating children and young people, often consisting of various levels such as elementary, middle, and high school.

Behaviorism

A school of psychology that focuses on observable behaviors as the subject of study, negating the need to consider internal mental states.

Theories

Systematic sets of ideas intended to explain phenomena or concepts, providing frameworks for understanding observations and making predictions.

John B. Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the importance of observable behaviors over internal mental states.