Whenever a Nation's Currency Is Expected to Depreciate Because of Various

question 31

Multiple Choice

Whenever a nation's currency is expected to depreciate because of various market conditions, the following situation exists regarding its forward rate for another currency:

• A) there is a forward discount from the spot rate by the rate of depreciation.
• B) there is a forward premium from the spot rate by the rate of depreciation.
• C) there is no difference between the spot and forward rates.
• D) there is no predictable relationship between the spot and forward rates.

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Definitions:

International Market

The vast expanse of global trade and commerce, where businesses from different countries buy, sell, and exchange goods and services.

Carpenters

Skilled craftspeople who cut, shape, and install building materials during the construction of buildings, ships, timber bridges, concrete formwork, etc.

Vacancies

are open positions or jobs within an organization that are available to be filled by new employees.

Pay Equity Legislation

Laws aimed at eliminating the gender pay gap by ensuring that men and women receive equal pay for work of equal value.