Multiple Choice
According to the IFE, if British interest rates exceed U.S. interest rates:
A) the British pound's value will remain constant.
B) the British pound will depreciate against the dollar.
C) the British inflation rate will decrease.
D) the forward rate of the British pound will contain a premium.
E) today's forward rate of the British pound will equal today's spot rate.
Correct Answer:

Verified
Correct Answer:
Verified
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