Which of the Following Indicates That the Dollar Is Selling

question 6

Multiple Choice

Which of the following indicates that the dollar is selling at a discount on the 30-day forward market?

• A)The spot exchange rate is $1 = ×120 currently and $1 = ×130 after 30 days.
• B)The spot exchange rate is $1 = ×120 currently and $1 = ×100 after 30 days.
• C)The current spot exchange rate is $1 = ×120 and the 30-day forward rate is $1 = ×110 after 30 days.
• D)The current spot exchange rate is $1 = ×120 and the 30-day forward rate is $1 = ×130 after 30 days.
• E)The current spot exchange rate is $1 = ×120 and the 30-day forward rate is $1 = ×120 after 30 days.

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Definitions:

Albinism

A genetic condition characterized by a lack of melanin pigment in the skin, hair, and eyes, leading to light coloring and increased sensitivity to the sun.

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A condition characterized by abnormally rapid breathing.

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Connective

Referring to connective tissue, which supports, binds together, and protects tissues and organs in the body.