If a Dollar Will Buy Fewer Units of a Foreign

question 43

True/False

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

---

Definitions:

Multidirectional

Describes development or change that can proceed in multiple directions, indicating variability and non-linearity in processes or growth.

Compensate

To make up for something undesired by exerting an effort or offering something in return.

Cultivating

The process of trying to acquire or develop a quality, sentiment, or skill.

Multidimensional

Having or relating to multiple aspects, factors, or components.