Which of the Following Appears to Be a Safe Assumption

question 36

Multiple Choice

Which of the following appears to be a safe assumption when there is no difference between the forward and spot exchange rates between two currencies?

• A) The countries have equal nominal interest rates.
• B) The spot rate is expected to change.
• C) Expected inflation is less than the nominal rate.
• D) Both currencies are selling at a premium relative to the other.

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Definitions:

Fault Codes

Diagnostic codes that indicate specific issues or malfunctions within a vehicle's systems or electronics.

Transmission Wait Light

An indicator light on the dashboard that informs the driver to wait while the transmission reaches an optimal operation condition.

Service Light Flashes

Indicator lights on a vehicle's dashboard that blink to alert the driver about maintenance or service needs.

Nominal Torque Rating

The maximum continuous torque a device is rated to handle under specific operating conditions.