Due to Recent Advances in High Speed Communication Networks,the Information

question 45

True/False

Due to recent advances in high speed communication networks,the information lag,or the time it takes for information to be disseminated around the world,has been significantly shortened.

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Definitions:

Interest Rate Parity

A theory suggesting that the difference in interest rates between two countries will be equal to the differential between the forward exchange rate and the spot exchange rate.

British Security

A financial instrument issued in the UK that represents either equity in a company, debt obligations, or other rights to ownership or profit.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date.

International Fisher Effect

A theory stating that the difference in nominal interest rates between two countries is equal to the expected change in their exchange rates.