Forward Points (Bid and Ask) in the Currency Market Reflect

question 24

Multiple Choice

Forward points (bid and ask) in the currency market reflect

• A) The interest differential between the two currencies.
• B) Which currency is at a higher interest rate.
• C) Both (a) and (b).
• D) Neither (a) nor (b).

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Definitions:

Crossover Point

The point at which two different options, investments, or costs equate to each other in terms of their financial value or impact.

Rice Cooker

An electric kitchen appliance designed for boiling or steaming rice.

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the level of production or business activity, such as materials, labor, and energy costs.