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Spot Rate on the Euro Is $And the 180?day Forward

Question 32

Multiple Choice

spot rate on the euro is $and the 180?day forward rate is $The difference between the two rates means


A) interest rates are higher in the U.S. than in Germany
B) the euro has risen in relation to the dollar
C) the inflation rate in Germany is declining
D) the euro is expected to fall in value relative to the dollar

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