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:

Relationship Roles

The expected behaviors and responsibilities assigned to individuals in various interpersonal relationships.

Extraversion

A personality trait characterized by outgoingness, high levels of social engagement, and a tendency to seek stimulation in the company of others.

Attraction Relations

The dynamics of interpersonal or social attraction, including factors that draw individuals or groups towards each other.

Interactionist Approach

A theoretical perspective in sociology and psychology that focuses on how individuals interact with each other in society, shaping their behaviors and social roles.