If Interest Rate Parity Exists, Financing with a Foreign Currency

question 15

True/False

If interest rate parity exists, financing with a foreign currency may still be feasible, but it would have to be conducted on an uncovered basis (i.e., without use of a forward hedge).

---

Definitions:

Staffing Efforts

The activities involved in identifying, acquiring, and managing personnel to meet an organization's needs.

Customer Satisfaction

The measurement of how products or services supplied by a company meet or exceed the expectation of its customers.

Greater Effectiveness

Achieving enhanced performance or outcomes in a more efficient, productive manner.

HR Department

The division within an organization responsible for personnel sourcing, hiring, training, policy implementation, and ensuring workforce compliance with legal standards.