depreciate expected inflation expected inflation rates 6. If expected real interest rates are similar across countries, countries with rates will have nominal interest rates, and countries with will have nominal interest rates. A) high, high, high, low B) high, low, high, low C) low, high, low, high D) high, high, low, low 7. The current RM/USD spot rate is RM3.05/USD. The 3-month forward rate is quoted The 1-year forward rate is quoted as RM3.06/USD. What do we learn from 5/USD. The 3-month forward rate is quoted as RM3.00/USD. these A) The 3-month interest rate in Malaysia is higher than in the US, but the 1-year interest rate Malaysia is lower than in the US B) The 3-month interest rate in Malaysia is lower than in the US, but the 1-year interest race Malaysia is higher than in the US C) There are arbitrage opportunities in the market, because the 3-month forward rate is above the year forward rate D) There appears to be a lot of selling pressure on the Ringgit one year from now