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predictor of near-term FX rates a. True b. False ANS: 11.The International Fisher Effect states...

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predictor of near-term FX rates a. True b. False ANS: 11.The International Fisher Effect states that a. A countries spot exchange rate should change in the same direction as interest rate differentials between countries b. A countries spot exchange rate should change in opposite and by an equal amount between countries C. A change in interest rates will not impact spot rates d. None of the above ANS: 12. A Forward rate for FX is an unbiased predictor of future spot rates a. Agree b. Disagree Why? ANS

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