Forward and spot exchange rates

When the GBP forward rate is below the current spot rate, the GBP is selling at a .

An appreciation in the value of the U.S. dollar against the British pound would tend to: A: Increase in the spot price of the yen B: Increase in the forward price of the dollar C: Sale of dollars in the forward market D: Purchase of yen in the spot market

Exchange rate includes ___ and forward rate. A: spot B: occasional C: immediate D: flexible

The __________ exchange rate is the price for “immediate” currency exchange. A: Current B: Forward C: Future D: Spot

The interest rate can be divided into spot interest rate and forward interest rate according to the time of interest calculation.

If the forward exchange rate, defined as the domestic currency price<br/>of the foreign currency, is smaller than the spot exchange rate,<br/>there is a ( ). A: forward premium on the foreign currency. B: forward discount on the foreign currency. C: shortage of dollars. D: surplus of dollars.

‏The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. The forward ____ is ____ percent.‌ A: discount; 1.9 B: discount; 1.8 C: premium; 1.9 D: premium; 1.8

__________ ensures that exchange rates in different locations are essentially the same. A: Appreciation of the currency B: Arbitrage C: Forward trading D: Spot trading

An<br/>agreement to exchange currencies sometime in the future is referred<br/>to as which one of the following?() A: Forward<br/>trade B: Hedge C: Gilt D: Forward<br/>exchange rate E: Spot<br/>trade