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

question 15

True/False

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

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Definitions:

Emotional Distress

A state of emotional suffering typically characterized by feelings of anxiety, depression, grief, or anguish.

Subjective Discomfort

Personal feelings of unease, distress, or discomfort which may not be visible or known to others.

Emotional Distress

Negative emotions and psychological strain experienced as a response to various stressors and life events.

Subjective Discomfort

The personal and often unquantifiable feeling of distress or unease that a person may experience.