The Condition That States the Current Forward Exchange Rate Is

question 278

Multiple Choice

The condition that states the current forward exchange rate is an unbiased predictor of the future spot exchange rate is called:

• A) The unbiased forward rates condition.
• B) Uncovered interest rate parity.
• C) The international Fisher effect.
• D) Purchasing power parity.
• E) Interest rate parity.

---

Definitions:

Anterograde Interference

A cognitive phenomenon where new information interferes with the ability to recall older information.

Consolidation Problems

Difficulties in the process of stabilizing a memory trace after the initial acquisition.

Proactive Interference

The difficulty in learning new information because of the interfering effects of previously learned information.

Memory

The cognitive process by which information is encoded, stored, and retrieved when needed, framing an essential part of the learning process.