Trading costs have steadily declined since the 1980s thanks…

Trading costs have steadily declined since the 1980s thanks to online trading platforms such as Schwab, Fidelity, and Robinhood. This reduction in trading costs has _____________ investor activity in foreign exchange markets which has had made central bank intervention ___________ effective.

Assume interest rates are higher in Germany than in the Unit…

Assume interest rates are higher in Germany than in the United States. An American investor who invests funds in Germany to take advantage of the higher interest rates will be __________ the euro. To hedge this exposure, the investor can ___________ euros forward.