There Is Only One Reason for a Currency to Trade

question 8

True/False

There is only one reason for a currency to trade at a forward premium - it has a lower interest rate than the terms currency.

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Definitions:

Multinational Chain

A company that owns and operates facilities in multiple countries across the globe.

Brick And Mortar

Brick and Mortar refers to businesses that have physical premises for customers to visit as opposed to operating solely online.

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing mixes.