Interest Rate Parity Theory States That Interest Rates Must Be

question 72

True/False

Interest Rate Parity theory states that interest rates must be the same in all countries using floating exchange rates or else international markets will not be in equilibrium.

---

Definitions:

Communication

The process of exchanging information and ideas between individuals or entities, often involving speaking, writing, or using other mediums.

Legitimate Power

The authority derived from a formal position or role in an organization, which allows someone to influence others.

Supplier

A supplier is an entity that provides goods or services to another organization, playing a crucial role in the supply chain by influencing product quality, costing, and availability.

Walmart

An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.