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Describe a learning objective that would benefit from students using audio and video based communication tools.
Interest Rate Parity
Interest rate parity is an economic theory that suggests the difference between the interest rates of two countries is equal to the differential between the forward exchange rate and the spot exchange rate of their currencies.
Forward Rate
The predetermined rate at which two parties will exchange currencies on a future date, agreeing upon it in the present.
Spot Rate
The present cost at which a specific asset like a commodity, currency, or security is available for purchase or sale with immediate delivery.
Net Present Value
A financial metric that calculates the value of a project or investment by discounting future cash flows back to their present value to assess profitability and risk.
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