Question 11 1 pts Which of the following statements is incorrect? The forward rate is what you agree to pay for the currency in the future by signing a contract today to buy the currency on a date in the future. The spot rate is the cost of buying a foreign currency today "on the spot." If the exchange rate is the price in foreign currency for a dollar, the quote is called an American or direct quote. Given that the spot rate is $1.5136/ and the 90-day forward quote is $1.4974/, we can say that the U.S. dollar is expected to appreciate against the Euro in the future. All the answers are correct except one. Question 12 1 pts Which of the following statements is correct? With the international capital budgeting, the decision to accept international projects with a negative NPV increases the value of the firm and is consistent with the fundamental goal of financial management, which is to maximize the sales. According to a British buyer, the lower the dollar price of pounds, the greater the number of pounds that must be given up to obtain dollars to buy foreign goods. The forward rate is what you agree to pay for the currency today by signing a contract today to buy the currency on a date today or in two business days. All the answers are correct. Country risk has no effect on a firm's cash flows