1. Suppose that todays spot exchange rate between the Euro and the US dollar is $1.20 = 1. If the 90-day forward exchange rate is$1.25 = 1, the dollar is selling at a _____ on the 90- day forward market

A. gain B. loss C. premium D. discount

2.If a government intervenes in the exchange rate system is a very limited way, the countrys exchange rate is considered: A. a floating exchange rate. C. a managed float. B. a pegged exchange rate. D. a fixed exchange rate.