Under Unbiased Expectations Theory, the Expected Future Spot Rate Is

question 21

Multiple Choice

Under unbiased expectations theory, the expected future spot rate is

• A) the mean of future spot rates.
• B) equal to the forward rate.
• C) equal to the level of future inflation.
• D) less than the forward rate.

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Definitions:

Bloodstream

The blood circulating through the body of a person or animal, carrying oxygen, nutrients, and waste products.

Target Organ

A specific organ or tissue upon which a hormone, drug, or other substance acts or exerts its effects.

ADH

Antidiuretic hormone, also known as vasopressin, which helps regulate the body's retention of water by increasing water reabsorption in the kidneys.

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