What is meant by interest rate parity?
What will be an ideal response?
Answer: Interest rate parity is the theory that explains the differences between spot rates and forward rates by relating them to differing interest rates in the two countries. Interest rate parity can be expressed by the following identity: Difference in interest rates=ratio of the forward and the spot rates.
You might also like to view...
How would merchant wholesaler HCN operate?
What will be an ideal response?
Jungmin’s job as a biomedical engineer involves conducting research on the engineering aspects of the biological systems. Most important are his written reports on his findings. Jungmin’s supervisor based Jungmin’s performance appraisal on the reports. It is likely that Jungmin’s performance appraisal is ______.
A. valid B. reliable C. based on mission and objectives D. feasible
In a market with ________, there are many sellers, each offering a slightly different product. Firms can differentiate products and focus on nonprice competition
A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) socialism
The "battered woman's syndrome" illustrates the application of feminist jurisprudence
Indicate whether the statement is true or false