Which of the Following Is a Theory That the Difference

question 86

Multiple Choice

Which of the following is a theory that the difference in interest rates between two countries is equal to the difference between the forward currency exchange rate and the spot exchange rate?

• A) Purchasing power parity
• B) Interest rate parity
• C) Law of one price
• D) Currency swap parity

---

Definitions:

Muscle Relaxation

A technique aimed at reducing physical tension through exercises that relax specific muscle groups, often used as a stress management tool.

Conscious Breathing

A technique focusing on controlling the breath to improve mental, emotional, and physical well-being.

Coping Strategies

Techniques or methods used to manage stress, deal with difficult situations, or mitigate emotional distress.

Attitudinal Foundation

The underlying set of attitudes or beliefs that shape an individual's perceptions and behaviors.