If the Difference Between Forward and Spot Exchange Rates Is

question 79

Multiple Choice

If the difference between forward and spot exchange rates is positive,interest rate parity would predict that:

• A) the difference in interest rates between countries will be negative.
• B) the difference in interest rates between countries will be positive.
• C) there will be no difference in interest rates between countries.
• D) the difference will be quickly eliminated.

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Definitions:

Social Readjustment Rating Scale

A scale measuring stress levels based on life events and changes to predict susceptibility to stress-induced health breakdowns.

Holmes and Rahe

Refers to the Holmes and Rahe stress scale, a tool used to measure the stress load one is carrying and predict the likelihood of stress-induced health breakdowns.

Developed

Refers to something that has been advanced or progressed, often used in the context of countries, technologies, or ideas that have reached an advanced stage.

Sleeplessness-produced Problem

Issues or complications that arise as a direct result of insufficient sleep, such as cognitive impairments or mood disorders.