The forward US dollar is quoted at premium against Indian Rupees. This implies
A) Money market rates are higher in India than in the US.
B) Money market rates are lower in India than in the US.
C) Market yield is higher in US than in India.
D) Dollar has a better value than Indian Rupee.
Correct Answer:
Verified
Q5: The maxim 'buy low; sell high' is
Q6: India is facing continuous deficit in its
Q7: The effect of speculation on exchange rate
Q8: The demand for domestic currency in the
Q9: If PPP holds
A)The nominal exchange rate will
Q11: Determination of forward rates is explained by
A)Uncovered
Q12: According to International Fisher Effect
A)Forward Premium for
Q13: Cash and carry arbitrage explains the determination
Q14: The marking to market in respect of
Q15: For the balance kept in the margin
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents