If a foreign currency is quoted in American terms (the direct quote) and the forward rate for a foreign currency is less than the spot rate, the foreign currency is selling at a ________.
A) forward premium
B) backward discount
C) backward premium
D) forward discount
D) forward discount
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________ occurs when one agent in a transaction knows about a hidden characteristic of a good
A) The free-rider problem B) The tragedy of the commons C) Adverse selection D) Moral hazard
What is a public franchise? Are all public franchises natural monopolies?
What will be an ideal response?
Discuss the meaning of the phrase of supply-side economics, discussing how it is similar and different from the traditional classical model. Make sure to discuss the role of the Laffer curve in supply-side theory
What will be an ideal response?
Wages, rent, interest payments, and profits paid to the owners of productive resources are called ______ payments.
a. fixed b. transfer c. depreciation d. factor