If a Foreign Country's Interest Rate Is Similar to the U.S

question 12

Multiple Choice

If a foreign country's interest rate is similar to the U.S. rate, the forward rate premium or discount will be ____, meaning that the forward rate and the spot rate will provide ____ forecasts.​

• A) ​substantial; similar
• B) ​substantial; very different
• C) ​close to zero; similar
• D) ​close to zero; very different

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Definitions:

Reinvigorate

To infuse new life, vitality, or energy into something, often sparking renewal or revival.

Pragmatist Approach

A practical way of dealing with problems or challenges that focuses on finding workable solutions rather than adhering to fixed theories or ideologies.

Descriptive Orientation

An approach focused on observing, recording, and describing phenomena as they naturally occur, without attempting to influence or control the outcomes.

Organizational Life

Refers to the culture, processes, behaviors, and dynamics within an organization, influencing its effectiveness and employees’ wellbeing.