The direct spot quote for the Canadian dollar is $.76 and the 180?day forward rate is $.7The difference between the two rates is likely to mean that
A) inflation in the U.S. during the past year was lower than in Canada
B) interest rates are rising faster in Canada than in the U.S.
C) prices in Canada are expected to rise more rapidly than in the U.S.
D) the Canadian dollar's spot rate is expected to rise in terms of the U.S. dollar
Correct Answer:
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