QUESTION 7 In October 2022, UK's Prime Minister Liz Truss announced a program of large tax...
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QUESTION 7 In October 2022, UK's Prime Minister Liz Truss announced a program of large tax cuts allegedly to stimulate the British eonomy. The GBP depreciated 3.6% immediately. Please mark the only INCORRECT statement about the behavior of exchange rates: GBP Drops 3.6% Upon the Announcement GBPUSD (American) BloombergMarkets 14 4:58 PM 1.0856 1.1261 140 1.1200 1.1100 1.1000 1.0900 1.09 4:45 PM 0 0.000 O a. Being an asset price, exchange rates are informationally efficient and respond to "news" immediately O b. The great thing about Forward exchange rates is that they are an unbiased predictor and the best possible forecast for the future spot exchange rate St+i O c. Exchange rates are volatile and, like stocks, offer the investor a "risk premium" d. Spot (St) and Forward (Ft) exchange rates incorporate all the available information and the expectations of market participants about past and future events 5 points Save Answer QUESTION 7 In October 2022, UK's Prime Minister Liz Truss announced a program of large tax cuts allegedly to stimulate the British eonomy. The GBP depreciated 3.6% immediately. Please mark the only INCORRECT statement about the behavior of exchange rates: GBP Drops 3.6% Upon the Announcement GBPUSD (American) BloombergMarkets 14 4:58 PM 1.0856 1.1261 140 1.1200 1.1100 1.1000 1.0900 1.09 4:45 PM 0 0.000 O a. Being an asset price, exchange rates are informationally efficient and respond to "news" immediately O b. The great thing about Forward exchange rates is that they are an unbiased predictor and the best possible forecast for the future spot exchange rate St+i O c. Exchange rates are volatile and, like stocks, offer the investor a "risk premium" d. Spot (St) and Forward (Ft) exchange rates incorporate all the available information and the expectations of market participants about past and future events 5 points Save Answer
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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