In the Expression I = I_f - ΔEX^e/EX - ^hf,d

question 31

Multiple Choice

In the expression i = i_f - ΔEX^e/EX - ^hf,d, the term ^hf,d represents

• A)the currency premium.
• B)the difference between the inflation rate in the home country and the inflation rate in the foreign country.
• C)the average brokerage fee charged in the home country when domestic currency is exchanged for foreign currency.
• D)the tax levied by the home country's government on foreign exchange transactions.

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