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Briefly discuss the effects of violations of each of the assumptions of the Ideal Capital Market listed below.
Direct Exchange Rate
The amount of domestic currency required to buy one unit of a foreign currency.
Canadian Dollar
The currency of Canada, symbolized by CAD, and often represented by the dollar sign $, or C$ to differentiate it from other dollar-dominated currencies.
U.S. Dollar
The official currency of the United States, widely used as a benchmark and reserve currency globally.
Spot Exchange Rate
The current exchange rate at which one currency can be exchanged for another.
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