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:

Synthesize

To combine simpler substances chemically to form a more complex substance, often used in reference to the production of chemical compounds in a laboratory.

Organic Product

A compound that contains carbon atoms, typically formed as a result of organic reactions involving organic molecules or reagents.

Major

Pertaining to the dominant or most abundant product or outcome in a chemical reaction.

Structure

The arrangement of atoms within a molecule that defines its shape, properties, and reactivity.