Interest Rate Parity

question 99

Multiple Choice

Interest rate parity:

• A)eliminates covered interest arbitrage opportunities.
• B)exists when spot rates are equal for multiple countries.
• C)means the nominal risk-free rate of return must be the same across countries.
• D)exists when the spot rate is equal to the futures rate.
• E)eliminates exchange rate fluctuations.

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Definitions:

Behavior Therapy

A therapeutic approach that seeks to change potentially self-destructive or unhealthy behaviors through a variety of techniques.

Psychodynamic Therapy

A therapeutic approach that emphasizes unconscious psychological processes and childhood experiences in influencing current behavior and thoughts.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or destructive thoughts and behaviors by challenging and altering cognitive distortions.

EMDR

Eye Movement Desensitization and Reprocessing is a form of psychotherapy intended to lessen the emotional pain tied to traumatic experiences.