The Covered Interest Rate Parity Condition Can Be Stated as Follows

question 6

Multiple Choice

The covered interest rate parity condition can be stated as follows: The interest rate on dollar deposits equals the interest rate on euro deposits ________ the forward ________ on dollars against euros.

• A)plus;discount
• B)minus;premium
• C)plus;premium
• D)minus;discount
• E)times;premium

---

Definitions:

Token

A piece that represents something else, such as a coin representing monetary value or a symbol representing an idea or quality.

Lower Self-Esteem

Refers to a lower regard for one’s own worth or value.

Frustration-Aggression Hypothesis

A theory suggesting that aggression is often the result of frustration caused by blocked goals.

Aggression

Behaviors or actions intended to harm or intimidate others, driven by anger or hostility.