If the Forward Rate Is Used as an Indicator of the Future

question 1

True/False

If the forward rate is used as an indicator of the future spot rate, the spot rate is expected to appreciate or depreciate by the same amount as the forward premium or discount, respectively.

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Definitions:

Motivational Potential

The capacity of a task, job, or situation to induce an individual to exert effort towards achieving a goal.

Profit Sharing

An incentive program where employees receive a share of the company's profits, reflecting their contribution to its success.

Weak Economy

A state where a country's overall economic performance is poor, characterized by low growth, high unemployment, and declining business activities.

Job Depth

The degree of control employees have over their tasks and procedures at work.