Assume That the Interest Rate in the Home Country of Currency

question 39

Multiple Choice

Assume that the interest rate in the home country of Currency X is a much higher interest rate than the U.S. interest rate. According to interest rate parity, the forward rate of Currency X:

• A) should exhibit a discount.
• B) should exhibit a premium.
• C) should be zero (i.e., it should equal its spot rate).
• D) B or C

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Definitions:

Influence Voter Turnout

Factors or actions that affect the percentage of eligible voters who actually vote in elections, such as campaign efforts, voter laws, and social mobilization.

Racial Minorities

Racial minorities are groups of people who are distinguished from the dominant group in a population by their racial or ethnic characteristics.

Women's Suffrage

The right of women to vote and stand for electoral office, achieved through various movements across the world at different times.

Right To Vote

The legal privilege or entitlement of individuals to participate in the election of government leaders and to influence government policy.