According to the Expectations Theory of Exchange Rates, What Change

question 69

Multiple Choice

According to the expectations theory of exchange rates, what change is expected in the future spot exchange rate if the current spot rate is 8% lower than the forward exchange rate?

• A)Future spot rate is expected to increase by 8%
• B)Future spot rate is expected to decrease by 8%
• C)Future spot rate is expected to decrease by 4%
• D)No change is expected in the future spot rate Difference between forward and spot rates = Expected change in spot rates

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Definitions:

Practice-Level Theories

Theories that are specifically designed to guide the day-to-day practice of professionals in a certain field.

Scope

The extent or range of a subject, activity, or project's coverage, influence, or action.

Level Of Abstraction

The degree to which information is summarized or generalized; in computer science, this can refer to how far removed a programming concept is from machine language, with higher levels being more human-readable.

Metaparadigm

A set of the most abstract and fundamental concepts that form the framework of a discipline, in nursing it includes person, environment, health, and nursing.