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If workers and firms lower their inflation expectations
Premium
An amount paid in addition to the standard or nominal cost, often associated with insurance, bonds, or the difference above a product's nominal value.
Spot Rate
The current market price at which a particular asset, such as currency, commodity, or security can be bought or sold for immediate delivery.
Direct Quote
A currency exchange rate quoted as the domestic currency per unit of the foreign currency.
Exchange Rate Risk
The potential for investors or companies to experience financial loss due to fluctuations in the exchange rate between two currencies.
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