According to the IFE, If British Interest Rates Exceed U

question 35

Multiple Choice

According to the IFE, if British interest rates exceed U.S. interest rates:

• A) the British pound's value will remain constant.
• B) the British pound will depreciate against the dollar.
• C) the British inflation rate will decrease.
• D) the forward rate of the British pound will contain a premium.
• E) today's forward rate of the British pound will equal today's spot rate.

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Definitions:

Avoided

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Disagreement Signals

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Close-ended Questions

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