If the Forward Exchange Rate Is an Unbiased Predictor of Future

question 36

True/False

If the forward exchange rate is an unbiased predictor of future spot rates, then future spot rates will always be equal to current forward rates.

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Definitions:

Mental Disorder

A health condition characterized by significant dysfunction in an individual's cognition, emotions, or behavior, often distressing and impairing.

Systematic Desensitization

A behavioral therapy technique used to gradually reduce anxiety through the use of relaxation techniques and exposure to feared stimuli.

Psychotherapy

The management of mental illness through psychological methods instead of medical treatments.

M'Naghten Rule

A legal standard used to determine whether a defendant was sane at the time of committing a crime, focusing on their ability to understand right from wrong.