If the Difference Between Forward and Spot Exchange Rates Is

question 79

Multiple Choice

If the difference between forward and spot exchange rates is positive,interest rate parity would predict that:

• A) the difference in interest rates between countries will be negative.
• B) the difference in interest rates between countries will be positive.
• C) there will be no difference in interest rates between countries.
• D) the difference will be quickly eliminated.

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Definitions:

Virtual Private Network

A technology that creates a safe and encrypted connection over a less secure network, such as the internet.

Wide Area Network

A Wide Area Network (WAN) is a telecommunications network that extends over a large geographical area, connecting computers and smaller networks to each other.

Extranet

A private network that uses Internet protocols and the public telecommunication system to securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses.

Virtual Network

Common type of technology infrastructure, which consists of links that are not wired connections.