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:

Altering Attitudes

The process of changing one’s own or another's stance, opinion, or feelings towards someone or something.

Audience's Characteristics

These are the traits, interests, demographics, and behaviors of the intended or actual audience of a message or product.

Medium Of Communication

Channels or systems through which information is transmitted from one entity to another, such as spoken language or media.

Change In Attitude

A shift in an individual's thoughts, feelings, or behaviors towards an object, person, or situation.