What Can Be Said About the Spot Exchange Rate of Dollars

question 31

Multiple Choice

What can be said about the spot exchange rate of Dollars for pounds if nominal interest rates are higher in Canada than in Great Britain?

• A)It should exceed the forward rate of Dollars for pounds
• B)It should be less than the forward rate of Dollars for pounds
• C)It is expected to increase
• D)It is expected to remain constant

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Definitions:

Dopamine

A neurotransmitter involved in reward, pleasure, and motor function in the brain.

Attraction

The feeling of being drawn towards someone or something, often due to physical, emotional, or psychological factors.

Helen Fisher

An American anthropologist and human behavior researcher known for her work on romantic love, marriage, and the biology of attraction.

Psychological Context

The mental and emotional factors that influence the perceptions, thoughts, and behaviors of an individual or group.