14-57 Which of the Following Is an Example of Interest

question 50

Multiple Choice

14-57 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.
• E)All currency exchange rates and interest rates move in unison.

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Definitions:

Soft Exoskeleton

A flexible external covering or support structure found in some organisms, providing protection and structural support while allowing movement.

Earthworm

A type of invertebrate animal known for its role in aerating soil and breaking down organic material into fertile humus.

Clitellum

A thickened, glandular section of the body found in earthworms and some other annelids, crucial for reproduction.

Fertilization

Fusion of sperm and egg nuclei, producing a zygote that develops into a new individual.