Question: QUESTION-1: TRUE/FALSE. Provide brief explanation to justify your answer. ( 5 Marks each. Note just T/F answers i.e, without explanation will earn only 2 of

QUESTION-1: TRUE/FALSE. Provide brief explanation to justify your answer. ( 5 Marks each. Note just T/F answers i.e, without explanation will earn only 2 of 5 marks) [total 80 Marks] A. If a country has a current account deficit then it is investing more than it savers. B. If both covered and uncovered interest parity (IRP) hold then the forward exchange rate is an unbiased predictor of the future spot exchange rate. C. Higher domestic interest rates cause the domestic currency to appreciate when real interest rate is fixed

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