Which of the Statements Below Is TRUE

question 62

Multiple Choice

Which of the statements below is TRUE?

• A) Spot rates are based upon the interest rates for two countries.
• B) Forward Indirect Ratet = Current Indirect Rate ×
• C) There is no way to lock in future currency exchange rates.
• D) What the International Fisher Effect really tells us is that inflation rates the world round are the same and that one cannot exploit different inflation rates across different countries.

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