​According to the International Fisher Effect (IFE)

Multiple Choice

​According to the international Fisher effect (IFE) :

A) ​the nominal rate of return on a foreign investment should be equal to the nominal rate of return on the domestic investment.
B) ​the exchange rate-adjusted rate of return on a foreign investment should be equal to the interest rate on a local money market investment.
C) ​the percentage change in the foreign spot exchange rate will be positive if the foreign interest rate is higher than the local interest rate.
D) ​the percentage change in the foreign spot exchange rate will be negative if the foreign interest rate is lower than the local interest rate.