Empirical evidence indicates that forward parity holds in the international currency and Eurocurrency markets.
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Q16: Covered interest arbitrage ensures that the ratio
Q17: The following exchange rates are in equilibrium:
Q18: The actions of arbitrageurs promote the law
Q19: Forward premiums and discounts depend on interest
Q20: Real assets are more likely to conform
Q22: Empirical tests indicate that persistent inflation differentials
Q23: Real changes in currency values reflect changes
Q24: A nominal appreciation of the domestic currency
Q25: For daily measurement intervals, both nominal and
Q26: Because currencies are standardized assets that are
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