If the forward rate is less than the spot rate on a direct quote basis, the foreign currency would be selling at a

Name: If the forward rate is less than the spot rate on a direct quote basis, the foreign currency would be selling at a
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Question

Quizplus · Accepted Answer

If the forward rate is less than the spot rate on a direct quote basis, it means that the future price of the foreign currency is lower than its current price. This indicates that the foreign currency is selling at a discount. Therefore, Choice C is the best answer.

If the Forward Rate Is Less Than the Spot Rate