According to Interest Rate Parity (IRP):​

question 35

Multiple Choice

According to interest rate parity (IRP) :​

• A) ​the forward rate differs from the spot rate by a sufficient amount to offset the inflation differential between two currencies.
• B) ​the future spot rate differs from the current spot rate by a sufficient amount to offset the interest rate differential between two currencies.
• C) ​the future spot rate differs from the current spot rate by a sufficient amount to offset the inflation differential between two currencies.
• D) ​the forward rate differs from the spot rate by a sufficient amount to offset the interest rate differential between two currencies.

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