Spot Rate on the Euro Is $And the 180?day Forward

question 25

Multiple Choice

spot rate on the euro is $and the 180?day forward rate is $The difference between the two rates means

• A) interest rates are higher in the U.S. than in Germany
• B) the euro has risen in relation to the dollar
• C) the inflation rate in Germany is declining
• D) the euro is expected to fall in value relative to the dollar

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