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How rates depends on maturity
Rates depending on maturity. Even though rates with different maturity (all recalculated to a yearly rate) need not be exactly equal, they cannot be too different either. This is particularly true for rates with similar maturity. The seven month rate cannot deviate far from the six month rate since they are fairly close substitutes.
Explaining balance of payments: First, with the second oil shock of 1979-80 and doubling of India's import bill along with dismal export performance as result of severe
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