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​According to the IFE, If British Interest Rates Exceed U

Question 42

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.

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