Which of the Following Is NOT True Regarding Nondeliverable Forward

question 67

Multiple Choice

Which of the following is NOT true regarding nondeliverable forward (NDF) contracts?

• A) NDFs are used primarily for emerging market currencies.
• B) Pricing of NDFs reflects basic interest rate differentials plus an additional premium charged for dollar settlement.
• C) NDFs can only be traded by central banks.
• D) All of the above are true.

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Definitions:

Partial Pressure

The pressure that a single gas component in a mixture of gases would exert if it occupied the entire volume alone at the same temperature.

Pulmonary Capillaries

Tiny blood vessels located within the lungs where gas exchange, including the uptake of oxygen and release of carbon dioxide, occurs.

Oxyhemoglobin-Dissociation Curve

A graph showing the relationship between the partial pressure of oxygen and the saturation of hemoglobin with oxygen.

Body Temperature

The measure of the body's ability to generate and get rid of heat, vital for maintaining metabolic processes.