The Theory That States That Expected Real Rates of Return

question 21

Multiple Choice

The theory that states that expected real rates of return should be equal across countries is called

• A)the Fisher effect.
• B)uncovered interest rate parity.
• C)covered interest rate parity.
• D)purchasing power parity.

---

Definitions:

England

A country that is part of the United Kingdom, known for its rich history, cultural heritage, and as the birthplace of the English language.

United States

A country in North America consisting of 50 states and a federal district, known for its diverse culture and significant global influence.

Sierra Club

An environmental organization in the United States committed to protecting the natural world and addressing climate change.

Clifford Sifton

A Canadian politician known for his role in promoting immigration to settle the western provinces of Canada, significantly shaping the nation's demographic and agricultural expansion.