If Interest Rate Parity (IRP) Exists, Then the Rate of Return

question 56

True/False

If interest rate parity (IRP) exists, then the rate of return achieved from covered interest arbitrage should be equal to the rate available in the foreign country.

---

Definitions:

Low Birth Weight

A term used when a newborn weighs less than 2,500 grams (5 pounds, 8 ounces) at birth, which can pose health risks.

Teratogens

Agents or factors that can cause birth defects or developmental abnormalities in an embryo or fetus.

Developing Fetus

The stage of human growth within the womb from conception to birth.

Multiple Risk Factors

Refers to the presence of several factors or conditions in an individual's life or environment that collectively increase the chance of developing a disease, disorder, or problem.