If a Foreign Country's Interest Rate Is Similar to the U.S

question 52

Multiple Choice

If a foreign country's interest rate is similar to the U.S. rate, the forward rate premium or discount will be ____, meaning that the forward rate and spot rate will provide ____ forecasts.

• A) substantial; similar
• B) substantial; very different
• C) close to zero; similar
• D) close to zero; very different

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Definitions:

Intervention

A strategic action or process aimed at solving a problem or improving a situation, often in a social, educational, or health context.

Primary Prevention

Efforts or actions taken to prevent the onset of disease or injury before it occurs, typically through risk reduction or protection.

Multicultural Population

A diverse community made up of people from various racial, ethnic, and cultural backgrounds.

Psychotherapy

A form of psychological treatment that involves talking therapies to treat mental health issues and emotional difficulties.