Which of the Following Appears to Be a Safe Assumption

question 36

Multiple Choice

Which of the following appears to be a safe assumption when there is no difference between the forward and spot exchange rates between two currencies?

• A) The countries have equal nominal interest rates.
• B) The spot rate is expected to change.
• C) Expected inflation is less than the nominal rate.
• D) Both currencies are selling at a premium relative to the other.

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Definitions:

Multiple Requests

The occurrence of several demands or enquiries made simultaneously or in a short period of time.

Inconvenience

A mild annoyance or cause of discomfort that makes a task or situation less easy or more troublesome.

Audience Comply

The act of an audience or recipient obeying or agreeing with a request, directive, or guideline presented to them.

Direct Request

A communication approach where the speaker plainly states their needs or desires without ambiguity.