The current U.S. dollar value of the Hong Kong dollar is $0.1250/HK$. The 180-day forward rate is $0.12148/HK$. The difference between the two rates suggests that ______.
A) inflation in the U.S. during the past year was lower than in Hong Kong
B) interest rates are rising faster in Hong Kong than in the United States
C) prices in Hong Kong are expected to rise more rapidly than in the United States
D) the Hong Kong dollar's value is expected to rise against the U.S. dollar
E) More than one of the above
Correct Answer:
Verified
Q37: A real appreciation of the domestic currency
Q38: Real exchange rate changes are determined by
Q39: A real appreciation in the value of
Q40: An increase in the real value of
Q41: The relation between the forward exchange rates
Q43: A real appreciation of the domestic currency
Q44: Fundamental analysis uses macroeconomic data to forecast
Q45: Technical analysis uses past price patterns to
Q46: A real depreciation of the domestic currency
Q47: Technical analysts believe that the currency markets
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