The forward exchange rate: Answer a. Is the same as the spot rate b. Is a synonymous term for the nominal exchange rate c. Is the rate at which Foreign Exchange Basics dealers are willing to commit to buying or selling a currency in the future d. Is always above the spot rate since it carries greater risk

Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter31: Open-Economy Macroeconomics: Basic Concepts
Section31.2: The Price For International transaction: Real And Nominal Exchange Rate
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The forward exchange rate:

Answer

a. Is the same as the spot rate

b. Is a synonymous term for the nominal exchange rate

c. Is the rate at which Foreign Exchange Basics dealers are willing to commit to buying or selling a currency in the future

d. Is always above the spot rate since it carries greater risk

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