Which One of the Following States That the Current Forward

question 93

Multiple Choice

Which one of the following states that the current forward rate is an unbiased predictor of the future spot exchange rate?

• A) Unbiased forward rates
• B) Uncovered interest rate parity
• C) International Fisher effect
• D) Purchasing power parity
• E) Interest rate parity

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Definitions:

Contract Obligations

Responsibilities and duties that parties are legally bound to perform as per the terms of a contract.

Commercial Impracticability

A doctrine in contract law that excuses a party from fulfilling their contractual obligations due to unforeseen, extreme hardships.

Revoking Acceptance

The act of legally rejecting a product or service after initially accepting it, based on certain conditions being met.

Nonconforming Goods

Products or items delivered under a contract that do not meet the specifications, standards, or requirements agreed upon.