OPIC Stands For

question 45

Multiple Choice

OPIC stands for:

• A) Organization for the Prevention of Insufficient Capitalization.
• B) Organization of Petroleum Importing Countries.
• C) Overseas Private Investment Corporation.
• D) Overseas Public Insurance Commission.

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Definitions:

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, used in derivatives markets.

Exchange Rate

The worth of one currency in relation to another for converting between them, showing the amount one currency is equivalent to in another currency.

Interest Rate Parity

A theory which posits that the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and the spot exchange rate.

Interest Rate Differential

The difference in interest rates between two financial instruments or two countries, often influencing currency values and investment flows.