A Forward Rate

question 13

Multiple Choice

A forward rate

• A)gravitates toward the expected future exchange rate for a particular currency.
• B)diverges away from the expected future exchange rate for a particular currency.
• C)is affected by inflation and interest rate differentials between two countries.
• D)Both a and c are correct.

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Definitions:

Rectus Abdominis

A paired muscle extending along the front of the abdomen that is important for posture and involved in flexing the spine.

Pulmonary Veins

The veins that carry oxygenated blood from the lungs back to the left atrium of the heart.

Bronchial Arteries

Arteries that provide oxygenated blood to the bronchi and connective tissue of the lungs.

Abdominal Aorta

The largest artery in the abdominal cavity, supplying blood to most of the abdominal organs.