Which One of the Following Conditions States That the Expected

question 316

Multiple Choice

Which one of the following conditions states that the expected percentage change in the exchange rate is equal to the difference in interest rates?

• A) Uncovered interest parity.
• B) Unbiased forward rates.
• C) Interest rate parity.
• D) Purchasing power parity.
• E) International Fisher effect.

---

Definitions:

Previous Experiences

Past events or occurrences that an individual has encountered, influencing their knowledge, perceptions, and actions.

Humanist Theory

A psychological perspective emphasizing individual choice and potential, focusing on the human capacity for growth and personal understanding.

Maslow

A reference to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivational needs.

Cultural Backgrounds

The various societal influences, traditions, and heritage that shape an individual's or group's identity and behaviors.