Which of the Following Is an Example of Interest Rate

question 36

Multiple Choice

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)US dollar rates on one-year US Treasury securities equal one-year Japanese government bond rates.
• C)US dollar rates on one-year US Treasury securities equal one-year Japanese government bond rates, restated in dollars.
• D)British pound two-year forward rates equal two-year Swiss franc forward rates.

---

Definitions:

Working Memory

A cognitive system responsible for temporarily holding and manipulating information in the mind for complex tasks such as reasoning and learning.

Sensory Memory

The first stage of memory, where sensory information is stored in its raw form for a very brief period, allowing the brain to process it further.

Information-Processing Model

A framework used in cognitive psychology that compares human thought processes to computer processing, involving the coding, storage, and retrieval of information.

Short-Term Memory

Activated memory that holds a few items briefly, such as digits of a phone number while calling, before the information is stored or forgotten.