If the forward exchange rate, defined as the domestic currency price
of the foreign currency, is smaller than the spot exchange rate,
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.
of the foreign currency, is smaller than the spot exchange rate,
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.
举一反三
- 7. If the expected future spot exchange rate value of the foreign currency decreases, with the interest rate differential unchanged, the current spot exchange rate value of the domestic currency:
- The price of one country's currency in units of another currency or commodity is the ________. A: foreign interest rate B: foreign currency exchange rate C: par value D: international rate
- Spot exchange rate is the exchange rate at which a foreign exchange dealer will convert one currency into another currency on _________________. A: some occasion B: a particular day C: a spot D: a period
- The __________ exchange rate is the price for “immediate” currency exchange. A: Current B: Forward C: Future D: Spot
- The foreign exchange rate is the price of A: capital B: products C: foreign currency D: investment