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Determine whether the system is inconsistent, dependent, or neither.
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Unbiased Forward Rates
Forward exchange rates that are equal to the future spot rates, as predicted by economic theory, free from any speculation or bias.
Spot Exchange Rate
The current market price for exchanging one currency for another for immediate delivery.
Forward Exchange Rate
An agreed exchange rate for a currency to be exchanged at a future date, used in hedging and trading strategies.
Inflation Rates
The rate at which the cost of general goods and services inflates, consequently eroding the power to buy.
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