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    Money Banking
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    Exam 10: Foreign Exchange
  5. Question
    With Regard to Exchange Rate Determination, the Law of One
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With Regard to Exchange Rate Determination, the Law of One

Question 2

Question 2

Multiple Choice

With regard to exchange rate determination, the law of one price is a useful theory only when applied to:


A) long-run periods of time.
B) forward exchange rates.
C) very short-run periods of time.
D) futures contracts.

Correct Answer:

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