The covered interest differential is ________ the sum of the forward premium on a currency and the interest rate differential.
A. less than
B. exactly equal to
C. more than
D. approximately equal to
Answer: D
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Using the data in the above table, the labor force participation rate is
A) 60.8 percent. B) 56 percent. C) 4.8 percent. D) 61.6 percent. E) 64.4 percent.
The too-big-to-fail policy
A) reduces moral hazard problems. B) puts large banks at a competitive disadvantage in attracting large deposits. C) treats large depositors of small banks inequitably when compared to depositors of large banks. D) allows small banks to take on more risk than large banks.
The decline in the transaction demand for money in the mid- and late 1970s
A) was accompanied by a fall in velocity. B) was predicted by most economists. C) may be partly explained by the development of money-market funds and other financial innovations. D) was the result of the Federal Reserve's easy-money policy.
Due to diminishing marginal returns, the ultimate source of economic growth in the United States from 1949 to 2010 has been
A) capital. B) labor. C) total factor productivity. D) Capital, labor, and total factor productivity are all subject to diminishing marginal returns, and therefore are all equally responsible for economic growth.