Which One of the Following Must Be Significantly Eliminated If

question 36

Multiple Choice

Which one of the following must be significantly eliminated if interest rate parity is to exist?

• A)Absolute purchasing power parity
• B)Short-run exposure to exchange rate risk
• C)Covered interest arbitrage opportunities
• D)Relative purchasing power parity
• E)Translation exposure

---

Definitions:

Declaration of War

A formal announcement by a sovereign or government declaring a state of war between it and another state.

Reconstruction Amendments

Amendments to the United States Constitution adopted between 1865 and 1870, including the 13th, 14th, and 15th amendments, which abolished slavery, granted citizenship rights, and protected voting rights regardless of race, respectively.

Federal Government

The national government of a federation, which holds the authority to govern issues that affect the entire country, contrasted with state or local governments.

Individual Freedoms

The rights and liberties that can be claimed by individuals by virtue of being human; often include freedom of speech, religion, and the press.