Which of the Following Statements Describes the Interest Parity Condition

question 95

Multiple Choice

Which of the following statements describes the interest parity condition?

• A)In the equilibrium,all the prices must be the same in the international market.
• B)In the equilibrium,the inflation rates must be the same in the international market.
• C)In the long run,the exchange rates must be the same in the international market.
• D)In the equilibrium,the rates of return on assets of comparable risk and liquidity must be the same in the international market.

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Definitions:

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An individual's understanding and evaluation of themselves, including their beliefs, attitudes, and perceptions of their own abilities and attributes.

Trait

A characteristic or quality distinguishing a person, often used in the context of personality traits.

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Refers to the manner in which an individual, group, or entity acts or conducts themselves, often observed in response to certain stimuli or in specific environments.

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To deduce or conclude information from premises or evidence.