Solved

If a Foreign Country's Interest Rate Is Similar to the U.S

Question 15

True/False

If a foreign country's interest rate is similar to the U.S. rate, the forward rate premium or discount will be close to zero, meaning that the forward rate and spot rate will provide similar forecasts.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q10: If an MNC invests excess cash in

Q11: If it was determined that the movement

Q12: Market-based forecasting is based on fundamental relationships

Q13: If graphical points lie above the perfect

Q14: Severus Co. has to pay 5 million

Q16: Two methods to assess exchange rate volatility

Q17: If the one-year forward rate for the

Q18: The potential forecast error is larger for

Q19: Foreign exchange markets are generally found to

Q20: The absolute forecast error of a currency