When People Describe What They Think an Exchange Rate Value

question 6

Multiple Choice

When people describe what they think an exchange rate value should be,they often use a benchmark model,known as ________.

• A) purchasing power parity
• B) interest rate parity
• C) the Fisher effect
• D) the International Fisher effect

---

Definitions:

Limestone

A sedimentary rock composed mainly of calcium carbonate, often used in construction and as a raw material in cement production.

Aquifer

An underground layer of water-bearing permeable rock, rock fractures, or unconsolidated materials (gravel, sand, or silt) from which groundwater can be extracted using a water well.

South Dakota

A state located in the Midwestern region of the United States, known for landmarks like Mount Rushmore.