Which of the Following Is Not True Regarding Interest Rate

question 54

Multiple Choice

Which of the following is not true regarding interest rate parity (IRP) ?

• A)When interest rate parity holds, covered interest arbitrage is not possible.
• B)When the interest rate in the foreign country is higher than that in the home country, the forward rate of that country's currency should exhibit a discount.
• C)When the interest rate in the foreign country is lower than that in the home country, the forward rate of that country's currency should exhibit a premium.
• D)When covered interest arbitrage is not feasible, interest rate parity must hold.
• E)All of the above are true.

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Physical interaction involving direct touch between individuals, which can be a mode of transmission for certain diseases.

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The authorization to do something that is granted by a figure of authority.

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A type of civil wrong where the perpetrator deliberately inflicts harm or injury on another individual, leading to legal liability.