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1.5pts The potential forecast error is larger for currencies that are more volatile True Faise
Question 7 1.5pts When the parent's home currency is weak, remitted funds from foreign
subsidiaries will convert to a smaller amount of the bome currency. True FalseIf a currency's
forward rate exhibits a premium, that cumency is forced to depteciave 1.5pts True False Question
9 Regarding the U.S. balance of payments, capital account items are relatively minor compared to
the financial account ittma. True False

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