menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    International Economics Study Set 9
  4. Exam
    Exam 13: Introduction to Exchange Rates and the Foreign Exchange Market
  5. Question
    If the Future Rate Equals the Spot Rate, Then in Equilibrium
Solved

If the Future Rate Equals the Spot Rate, Then in Equilibrium

Question 42

Question 42

Multiple Choice

If the future rate equals the spot rate, then in equilibrium:


A) the exchange rate must depreciate.
B) interest rates should be different.
C) the exchange rate will appreciate.
D) None of these will occur.

Correct Answer:

verifed

Verified

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

Related Questions

Q37: The fall in the U.S. dollar has

Q38: From uncovered interest parity, we know that

Q39: In which of the following categories would

Q40: Which of the following statements is equivalent

Q41: Slight discrepancies in the rates of appreciation

Q43: In equilibrium, the expected future spot rate

Q44: There can be an opportunity for covered

Q45: If a pair of shoes in the

Q46: A transaction cost associated with spot trading

Q47: Across the globe, exchange rate regimes are:<br>A)

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines