If the covered interest differential is zero, then
A. covered international investments will be profitable once we add in the interest earned on the foreign bonds.
B. a currency is at a forward premium by as much as its interest rate is higher than the interest rate in the other country.
C. covered interest rate parity has not yet been reached.
D. the overall covered return on a foreign-currency investment equals the return on a comparable domestic-currency investment.
Answer: D
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Federal deficits had become pretty much an annual event during the 25-year period 1970–1995 . Deficits occur when
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