Which of the Following Theories Suggests the Percentage Change in Spot

question 54

Multiple Choice

Which of the following theories suggests the percentage change in spot exchange rate of a currency should be equal to the interest rate differential between two countries?

• A) absolute form of PPP.
• B) relative form of PPP.
• C) international Fisher effect (IFE).
• D) interest rate parity (IRP).

---

Definitions:

Females

Individuals of the human species who are biologically characterized by two X chromosomes.

Genetic Lottery

A metaphorical expression referring to the random and uncontrollable nature of genetic inheritance from parents to offspring.

Conceived

Thought of or formed an idea; in biological terms, refers to the moment a sperm fertilizes an egg leading to pregnancy.

Zygote

This is the earliest cell that comes into existence once an egg cell is fertilized by a sperm cell, marking the initial stage in the development of an embryo.