One theory that is useful states that the forward premium or discount should be equal and opposite
in sign to the difference in the national interest rates for securities of the same maturity. This theory
is known as
A) the forward rate theory. B) the interest rate parity theory.
C) the covered interest arbitrage theory. D) the exchange rate theory.
B
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Suppose that Mexico levies a tariff on steel that is collected as a fixed amount of money per ton imported. This refers to
a. a compound tariff. b. an ad valorem tariff. c. a specific tariff. d. an effective tariff.
It has been suggested that as many as 9 out of 10 expatriate failures are related to __________.
Fill in the blank(s) with the appropriate word(s).
In comparing two projects, the ____ is often used to evaluate the relative riskiness of the projects
a. payback period b. net present value c. internal rate of return d. discount rate
Flexibility applies to which of the following situations?
a. Situations in which there are relevant circumstances and more than one possible accounting method exists. b. Situations in which there are relevant circumstances but only one possible accounting method exists. c. Situations in which there are no observable relevant circumstances and more than one possible accounting method exists. d. All of the above.