When a Foreign Interest Rate Is Higher Than a Domestic

When a foreign interest rate is higher than a domestic interest rate,the foreign currency's forward rate will be less than its spot rate.That means that:

A) the value of the foreign currency is expected to decline in the future.
B) the value of the foreign currency is expected to increase in the future.
C) the foreign interest rate is expected to increase in the future.
D) the foreign interest rate is expected to decline in the future.

Correct Answer:

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