Based on interest rate parity, the larger the degree by which the foreign interest rate exceeds the U.S. interest rate, the:

A.	larger will be the forward discount of the foreign currency.

B.	larger will be the forward premium of the foreign currency.

C.	none of the options listed

D.	smaller will be the forward premium of the foreign currency.

E.	smaller will be the forward discount of the foreign currency.

En

If it was determined that the movement of exchange rates was not related to previous exchange rate values, this implies that a ____ is not valuable for speculating on expected exchange rate movements.

A.	fundamental forecast technique

B	none of the options listed

C	technical forecast technique

D	technical or fundamental forecast technique

If an MNC invests excess cash in a foreign county, it would like the foreign currency to ____; if an MNC issues bonds denominated in a foreign currency, it would like the foreign currency to ____.

depreciate; appreciate

appreciate; depreciate

none of the options listed

appreciate; appreciate

depreciate; depreciate