An Individual Will Be Indifferent Between Holding Foreign or Domestic

Multiple Choice

An individual will be indifferent between holding foreign or domestic bonds when which of the following conditions holds?

A) Interest parity must hold.
B) The J- curve effect must hold.
C) The expected rate of depreciation of the domestic currency must be zero.
D) The Marshall- Lerner condition must hold.
E) The foreign and domestic interest rates must be equal.