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:

Behaviour Modification

A therapy approach that applies principles of learning to change undesirable behaviors to more desirable ones.

Target Behaviours

Specific behaviors or sets of behaviors that are identified for change or intervention within a therapeutic or educational setting.

Variable Reinforcement

A reinforcement strategy in which rewards are given out at unpredictable intervals or after an unpredictable number of responses, enhancing the persistence of the behavior.

Baseline Data

Initial data collected before an intervention or treatment to compare against future data, helping to assess progress or effectiveness.