Which of the Statements Below Is FALSE

question 6

Multiple Choice

Which of the statements below is FALSE?

• A)Forward rates play an important part in currency exchange because you can lock in future currency exchanges with these forward rates.
• B)From a business perspective,forward contracts are hedging tools for companies.By locking in a future exchange rate,companies can avoid unfavorable movements in exchange rates.
• C)When you convert your currency today,you are exchanging currency in the spot market.
• D)The International Fisher effect tells us that inflation rates are the same the world over.

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Definitions:

Income Gap

The disparity in the distribution of income among different groups within a population, often between the rich and the poor.

Economic Development

The process by which the economic well-being and quality of life of a nation, region, or local community are improved according to targeted goals and objectives.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including services and facilities necessary for its economy to function.

Real Income

The income of individuals or nations after adjusting for inflation, representing the actual purchasing power over goods and services.