If a Dollar Will Buy Fewer Units of a Foreign

question 33

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:

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

David Rosenhan

A psychologist known for his study "On Being Sane in Insane Places," which challenged the validity of psychiatric diagnoses.

Misdiagnosis

When a health condition is incorrectly diagnosed, potentially leading to inappropriate treatment or lack of necessary intervention.

In-Group Orientation

A sociological term referring to an individual's sense of belonging and identifying with a particular group, often leading to favoritism towards members of the same group.