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According to the Interest Parity Condition,if the Domestic Interest Rate

Question 100

Multiple Choice

According to the interest parity condition,if the domestic interest rate is 12 percent and the foreign currency is expected to depreciate by 2% against domestic currency. Then the foreign asset must offer an interest rate of ________%.


A) 14
B) 12
C) 10
D) 8

Correct Answer:

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