Which of the Following Is a Theory That the Difference

question 86

Multiple Choice

Which of the following is a theory that the difference in interest rates between two countries is equal to the difference between the forward currency exchange rate and the spot exchange rate?

• A) Purchasing power parity
• B) Interest rate parity
• C) Law of one price
• D) Currency swap parity

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Definitions:

Influence Tactic

Strategies or methods used to persuade or motivate others to follow a particular course of action.

Rational Persuasion

A technique for swaying others by using rational debates and empirical data to alter convictions, viewpoints, or actions.

Influence Superiors

describes the ability to affect the views or actions of those in higher positions in an organization or society.

Influence Tactic

Strategies or approaches used by individuals to sway or alter others' attitudes, beliefs, or actions toward a desired outcome.