If the forward rate is greater than the spot rate, what are markets signaling about their expectations for the future spot rates for the home currency?
What will be an ideal response?
The home currency is expected to depreciate over the maturity period of the forward contact.
Economics
You might also like to view...
Which of the following was given as a reason to doubt the idea of "New Economy"?
A) High growth in computer investment could not be sustained. B) Actual real GDP could not continue to grow slower than natural real GDP growth. C) Inflation could not be reduced by a higher productivity growth rate. D) All of the above.
Economics
The first United States income tax was instituted in 1913
a. True b. False Indicate whether the statement is true or false
Economics