The situation in which the difference in interest rates between two currencies is equal to the expected change in the spot rate over the same time period is known as:
A) covered interest arbitrage
B) covered interest parity
C) uncovered interest parity
D) uncovered interest arbitrage
Answer: C) uncovered interest parity
You might also like to view...
Why is it that pure monopoly would not likely exist without government?
What will be an ideal response?
Fractional reserve banking began as a search for
a. a different metallic monetary system. b. additional sources of gold. c. different types of borrowers. d. additional profits.
Economists view normative statements as
a. prescriptive, making a claim about how the world ought to be. b. descriptive, making a claim about how the world is. c. statements about the normal condition of the world. d. pessimistic, putting the worst possible interpretation on things.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward