Forward Rates Are All of the Following EXCEPT

question 41

Multiple Choice

Forward rates are all of the following EXCEPT

• A) quoted in both direct and indirect form.
• B) quoted at a premium or discount.
• C) beneficial to risk-reduction.
• D) equal to future spot rates.

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Definitions:

Equilibrium

A state of physical balance or a stable situation in which all forces are equal.

Two-Point Threshold

The minimum distance at which two points of contact can be felt as two distinct stimuli.

Gestalt

A concept in psychology that emphasizes the idea that the whole of anything is greater than its parts, focusing on patterns and configurations in perceiving objects.

Psychoanalysis

A therapeutic approach and theory of personality developed by Sigmund Freud that emphasizes unconscious motivations and conflicts.