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Which of the Following Is an Example of Interest Rate

Question 24

Multiple Choice

Which of the following is an example of interest rate parity?


A) The Japanese yen trades at the same exchange rate as the Swiss franc.
B) U.S.dollar rates on one year U.S.Treasury securities equal 1 year Japanese government bond rates.
C) U.S.dollar rates on one year U.S.Treasury securities equal 1 year Japanese government bond rates, restated in dollars.
D) British pound 2 year forward rates equal 2 year Swiss franc forward rates.
E) All currency exchange rates and interest rates move in unison.

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