Which One of the Following Appears to Be a Safe

question 43

Multiple Choice

Which one 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:

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Mind and Body

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Biopsychosocial Approach

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