Over the Long Run, Foreign Exchange Rates Are Determined by Transfers

question 26

True/False

Over the long run, foreign exchange rates are determined by transfers of bank deposits that respond to differences in real interest rates and to shifting expectations of future exchange rates.

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Definitions:

Flex

The action of bending a limb or joint, usually by the action of flexor muscles.

Extend

To straighten or spread out a body part or limb away from the body.

Synchondrosis

Synchondrosis is a type of joint in which the bones are connected by hyaline cartilage, allowing for little or no movement, typically found in the growth areas of children.

Synostosis

The fusion of two or more bones into a single bone, which can occur naturally during aging or as a result of pathological or surgical processes.