Statistical Studies of the Relationship Between Interest Rates and Later

question 41

Multiple Choice

Statistical studies of the relationship between interest rates and later depreciation rates show that

• A) the interest difference has been a very bad predictor in the large swings of exchange rates.
• B) the interest difference has been an accurate predictor in the large swings of exchange rates.
• C) the interest difference has correctly predicted the direction in which exchange rates would change.
• D) the interest difference has not yet been studied as a predictor in the large swings of exchange rates.
• E) the interest difference is unrelated to the large swings of exchange rates.

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