Instruments Denominated in Different Currencies Are Perfect Substitutes for One

question 16

Short Answer

Instruments denominated in different currencies are perfect substitutes for one another.
Empirical studies of the efficient foreign exchange market hypothesis have yielded conflicting results. Nevertheless, a consensus is developing that rejects the efficient market hypothesis. It appears that the forward rate is not an unbiased predictor of the future spot rate and that it does pay to use resources to attempt to forecast exchange rates.

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Definitions:

"It Gets Better"

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Heterosexism

An ideological system that denies, derogates, or stigmatizes non-heterosexual forms of behavior, identities, relationships, or communities.

Serial Monogamy

The practice of engaging in a series of monogamous sexual relationships where an individual has only one sexual partner at a time but multiple partners in their lifetime.

Functionalism

A theoretical framework in sociology that focuses on the functions or roles of society's various parts in maintaining societal stability and equilibrium.