Based on Interest Rate Parity, the Larger the Degree by Which

question 46

Multiple Choice

Based on interest rate parity, the larger the degree by which the U.S. interest rate exceeds the foreign interest rate, the:​

• A) ​larger will be the forward discount of the foreign currency.
• B) ​larger will be the forward premium of the foreign currency.
• C) ​smaller will be the forward premium of the foreign currency.
• D) ​smaller will be the forward discount of the foreign currency.

---

Definitions:

Inner Diameters

Measurements across the interior of a cylindrical object, typically used to specify the dimensions of pipes, tubes, or other circular objects.

Manufacturability

The ease with which products can be manufactured, considering factors like design, materials, and complexity.

Environmental Impact

The effect that a company's actions have on the natural environment, including pollution, resource depletion, and habitat destruction.

Standardization

The process of implementing and developing technical standards based on the consensus of different parties including firms, users, interest groups, standards organizations, and governments.