If Interest Rate Parity Holds, Then the One-Year Forward Rate

question 31

Multiple Choice

If interest rate parity holds, then the one-year forward rate of a currency will be ____ the predicted spot rate of the currency in one year according to the international Fisher effect.

• A) greater than
• B) less than
• C) equal to
• D) answer is dependent on whether the forward rate has a discount or premium

---

Definitions:

Needs Teaching

A determination that a patient requires additional information or instruction to understand their health condition, treatment, or care requirements.

Prevent Pneumonia

Strategies or interventions aimed at reducing the risk of developing pneumonia, a lung infection.

Advocacy

Process whereby a nurse objectively provides patients with the information they need to make decisions and supports the patients in whatever decisions they make.

Nursing Code of Ethics

A set of guiding principles that reflect the primary goals, values, and obligations of the nursing profession to uphold high standards of practice and patient care.