The spot exchange rate is equal to the forward exchange rate:

a. Only when the exchange rate is equal to 1.00 because then the inverse is also 1.00.
b. When the central bank chooses to equalize both rates.
c. When the interest rates of the two countries are not expected to change.
d. When the difference between the interest rates of the two countries are expected to remain constant.
e. When the nominal interest rates of the two countries are equal.


.E

Economics

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