The direct spot quote for the Canadian dollar is $.76 and the 180-day forward rate is $.74. The difference between the two rates is likely to mean that a . the Canadian dollar's spot rate is expected...

The direct spot quote for the Canadian dollar is $.76 and the 180-day forward rate is $.74. The difference between the two rates is likely to mean that

a . the Canadian dollar's spot rate is expected to rise in terms of the U.S. dollar

b . interest rates are rising faster in Canada than in the U.S.

c . prices in Canada are expected to rise more rapidly than in the U.S.

d . inflation in the U.S. during the past year was lower than in Canada