Interest Rate Parity (IRP)is Best Defined as

question 3

Multiple Choice

Interest Rate Parity (IRP) is best defined as

• A)When a government brings its domestic interest rate in line with other major financial markets.
• B)When the central bank of a country brings its domestic interest rate in line with its major trading partners.
• C)An arbitrage condition that must hold when international financial markets are in equilibrium.
• D)None of the above

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