Which of the Following Is an Example of Interest Rate

question 24

Multiple Choice

Which of the following is an example of interest rate parity?

• A)The Japanese yen trades at the same exchange rate as the Swiss franc.
• B)U.S.dollar rates on one year U.S.Treasury securities equal 1 year Japanese government bond rates.
• C)U.S.dollar rates on one year U.S.Treasury securities equal 1 year Japanese government bond rates, restated in dollars.
• D)British pound 2 year forward rates equal 2 year Swiss franc forward rates.
• E)All currency exchange rates and interest rates move in unison.