If the One-Year Forward Rate for the Dollar Is 0

question 2

Multiple Choice

If the one-year forward rate for the dollar is 0.80 euro, while the current spot rate is 0.82 euro, the expected percentage change in the euro is ____% to the nearest percentage.

• A) 0.03
• B) 0.02
• C) -0.02
• D) None of the above

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Definitions:

Socioemotional Selectivity Theory

A theory suggesting that people's social interactions and priorities change across the lifespan based on their perception of remaining time.

Psychosocial Theory

A theory that proposes that an individual's psychological development is influenced by their social interactions and surroundings across the lifespan.

Moral Behavior

Actions that are consistent with ethical principles and standards, often reflecting societal norms and personal values.

Social Dominance

A social theory that suggests there are hierarchies within societies that are maintained through a combination of age, ethnicity, gender, and other factors.