Which of the Following Is an Example of Interest Rate

question 102

Multiple Choice

Which of the following is an example of interest rate parity?

• A)The Japanese yen trades at the same exchange rate as the Swiss franc.
• B)U.S.dollar rates on one year U.S.Treasury securities equal 1 year Japanese government bond rates.
• C)U.S.dollar rates on one year U.S.Treasury securities equal 1 year Japanese government bond rates,restated in dollars.
• D)British pound 2 year forward rates equal 2 year Swiss franc forward rates.

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Definitions:

Flesh and Blood

A phrase used to denote a living human being, often emphasizing common human nature or familial bonds.

RUPA

The Revised Uniform Partnership Act, which governs the operation of partnerships in the United States.

Jointly and Severally

A legal term indicating that parties can be held responsible together or individually for a debt or obligation.