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QUESTION 12 Only spot rates are adjusted to eliminate covered interest arbitrage opportunities. True False QUESTION 13 Covered interest arbitrage is only possible when IRP

QUESTION 12 Only spot rates are adjusted to eliminate covered interest arbitrage opportunities. True False QUESTION 13 Covered interest arbitrage is only possible when IRP holds. True False QUESTION 14 In equilibrium, the forward rate for a given currency should always be greater than the current spot rate since money has time value. True False

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