If a Foreign Country's Interest Rate Is Similar to the U.S

question 69

True/False

If a foreign country's interest rate is similar to the U.S. rate, the forward rate premium or discount will be close to zero, meaning that the forward rate and the spot rate will provide similar forecasts.

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Definitions:

Annual Leave

Paid time off work granted by employers to employees to be used for personal activities.

Maternity Leave

A period of paid or unpaid leave granted to a mother before and after giving birth to care for the newborn.

Provision

A liability of uncertain timing or amount, recognized in the accounting records for future liabilities or losses.