According to International Fisher Effect
A) Forward Premium for a currency indicates its depreciation in future.
B) Forward Premium for a currency indicates its appreciation in future.
C) Forward Rates and spot rates are not linked
D) Forward Rates are based on expected future spot rates.
Correct Answer:
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Q7: The effect of speculation on exchange rate
Q8: The demand for domestic currency in the
Q9: If PPP holds
A)The nominal exchange rate will
Q10: The forward US dollar is quoted at
Q11: Determination of forward rates is explained by
A)Uncovered
Q13: Cash and carry arbitrage explains the determination
Q14: The marking to market in respect of
Q15: For the balance kept in the margin
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Q17: The following statement with respect to currency
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