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:

Succession

The progressive, natural change in an ecosystem's species composition over time, leading to ecological stability.

Facilitation Model

A concept in ecology where some species make conditions more suitable for the establishment and growth of other species in a habitat.

Tolerance Model

is a theory in ecology that describes how the ability of a species to tolerate environmental stress affects its success and distribution.

Inhibition Model

A concept used in various scientific disciplines, often referring to a process where one factor or substance decreases the rate or extent of a particular reaction or activity.