Questions 1 points An advantage of a fixed exchange rate system is that governments are not required to constantly intervene in the foreign exchange market to maintain exchange rates within specified boundaries. True False Question 6 Using interest rate parity calculate the forward premium or discount if home interest rate is 10% and foreign Interest rate is 8% Foreign currency will be traded at forward discount of -1.852%. Foreign currency will be traded at forward premium of 1.852%. Foreign currency will be traded at forward discount of 1.852% Foreign currency will be traded at forward premium of -1.818%