If the Foreign Exchange Market Is Efficient,the Forward Exchange Rate

question 47

True/False

If the foreign exchange market is efficient,the forward exchange rate would differ from the expected future spot exchange rate only by a risk premium.

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Definitions:

Organic Product

A substance or material originating from living beings or created through chemical processes involving organic compounds.

Reaction

A process resulting in the transformation of chemical substances into others through the breaking and formation of chemical bonds.

Organic Product

Chemical compounds produced by living organisms, typically characterized by their carbon-based structure.

Hydrophobic

Characteristic of molecules or parts of molecules that repel water or do not mix with water.