Which of the Following Statements Is True

question 114

Multiple Choice

Which of the following statements is true?

• A) Interest rate parity indicates that the forward premium or discount should be greater than the differences in the national interest rates for securities of the same maturity.
• B) Purchasing power parity indicates that, in the long run, exchange rates adjust to reflect international differences in inflation so that the purchasing power of each currency tends to remain the same.
• C) The International Fisher Effect indicates that the nominal interest rate should be the same all over the world at all times if the market is efficient.
• D) Both B and C.

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Definitions:

Water Retention

The accumulation of excess fluids in the body tissues, often leading to swelling.

Nonparents

Individuals who do not have children, either by choice or circumstance.

Child-Free

Individuals or couples who choose not to have children.

Infertile

The inability to conceive a child after a year or more of regular sexual intercourse without the use of birth control.