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Basic Question 27 of 27
Which approach focuses on the flows needed to achieve long-term equilibrium in the current account?
B. External sustainability approach.
C. Reduced-form econometric model.
A. Macroeconomic balance approach.
B. External sustainability approach.
C. Reduced-form econometric model.
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
explain international parity relations (covered and uncovered interest rate parity, forward rate parity, purchasing power parity, and the international Fisher effect);
describe relations among the international parity conditions;
evaluate the use of the current spot rate, the forward rate, purchasing power parity, and uncovered interest parity to forecast future spot exchange rates;
explain approaches to assessing the long-run fair value of an exchange rate;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.