If Interest Rate Parity Holds,the Currency of the Country with the Relatively

question 1

Multiple Choice

If interest rate parity holds,the currency of the country with the relatively _______ interest rates will trade at a forward _______ to the country with the relatively _______ interest rate.

• A) high; premium; low
• B) low; discount; high
• C) high; discount; low
• D) None of the given choices

---

Definitions:

Uric Acid

A waste product formed from the breakdown of purines, substances found in many foods, which is excreted in the urine.

Birds

Warm-blooded vertebrates characterized by feathers, beaks without teeth, laying of hard-shelled eggs, a high metabolic rate, and a four-chambered heart.

Reptiles

A class of cold-blooded vertebrates that include snakes, lizards, turtles, crocodilians, and various extinct groups, characterized by breathing air, laying shelled eggs, and having a skin covered with scales or scutes.

Urea

An organic compound and waste product produced in the liver, resulting from the metabolism of proteins, excreted in the urine.