The Forward Rate Market Is Dependent Upon

question 69

Multiple Choice

The forward rate market is dependent upon:

• A) current forward rates exceeding current spot rates.
• B) current spot rates exceeding current forward rates over time.
• C) current spot rates equaling current forward rates, on average, over time.
• D) forward rates equaling the actual future spot rates on average over time.
• E) current spot rates equaling the actual future spot rates on average over time.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Parent

In business and accounting, a parent entity controls one or more subsidiary entities.

Consolidation Worksheet

A tool used in accounting to combine the financial statements of a parent company with its subsidiaries to prepare consolidated financial statements.