In International Finance,covered Interest Rate Parity Refers To

question 64

Multiple Choice

In international finance,covered interest rate parity refers to:

• A) The forward rate being in excess of the spot rate.
• B) The advantage of one currency over another.
• C) The equivalence of the interest differential between two currencies to the forward premium or discount.
• D) The difference of the two comparable investments in two different countries.

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