If the Spot Rate Is 1

question 17

Multiple Choice

If the spot rate is 1.67CAN$/US$ and the 1-month forward rate is 1.70CAN$/US$:

• A) the Canadian dollar is selling at a premium.
• B) the Canadian dollar is selling at a discount.
• C) the U.S. dollar is selling at a discount.
• D) the U.S. dollar is selling at par.
• E) none of the above

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Definitions:

Secure Attachment

A healthy emotional bond formed in early childhood, characterized by trust and a sense of safety in the relationship with the caregiver.

Permissive Parenting

A parenting style characterized by low demands with high responsiveness, where parents set few rules and guidelines but are highly nurturing.

Ainsworth's Strange Situation

A procedure developed by psychologist Mary Ainsworth to assess attachment styles in young children by observing their reactions to separations and reunions with their caregivers.

Infant's Response

Refers to the reactions or behaviors exhibited by babies in response to external stimuli or internal states.