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The One-Year Forward Exchange Rate Is 50 INR/USD

question 33

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The one-year forward exchange rate is 50 INR/USD.If the one-year interest rate in the United States is 5% and in India it is 8%,what is the spot exchange rate so as to preclude arbitrage?


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Training

Training refers to the process of teaching or developing in oneself or others, any skills and knowledge that relate to specific useful competencies.

External Locus

A psychological concept referring to individuals who believe that external forces and situations influence their life outcomes.

Internal Locus

A belief that one has control over their own life and outcomes rather than external forces.

Weak Internal

Referring to the lack of strength, structure, or robust processes within an organization's internal framework, affecting its effectiveness and efficiency.

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