Which of the Following Factors Influences the Spread Between Forward

question 58

Multiple Choice

Which of the following factors influences the spread between forward and spot rates?

• A)​which currency is denominated as the domestic currency
• B)​the interest rate differential over time
• C)​the current cross rate between the two currencies
• D)​all are factors that may influence the spread

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Definitions:

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly used to measure the accuracy of a sample mean.

Population Standard Deviation

A measure of the dispersion of a set of values in a population, reflecting how much the values differ from the mean of the population.

Sample Size

The number of observations or data points collected from a population for use in a statistical analysis.

Effect Size Formula

A calculation used to describe the strength of the relationship between two variables.