The expected rate of currency depreciation is equal to the proportional difference between the forward rate and the spot rate. This is known as the:

a. forward depreciation.
b. backward depreciation.
c. forward premium.
d. backward premium.


Ans: c. forward premium.

Economics

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Indicate whether the statement is true or false

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The consumption function is the relationship between consumption and:

A. total spending. B. disposable income. C. investment. D. planned aggregate expenditure.

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A tax on buyers will ________ the price paid by the consumer and ________ the price received by the seller.

A. increase, decrease B. increase, increase C. decrease, decrease D. decrease, increase

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