Which of the Following Statements Describes the Interest Parity Condition

Multiple Choice

Which of the following statements describes the interest parity condition?

A) In the equilibrium,all the prices must be the same in the international market.
B) In the equilibrium,the inflation rates must be the same in the international market.
C) In the long run,the exchange rates must be the same in the international market.
D) In the equilibrium,the rates of return on assets of comparable risk and liquidity must be the same in the international market.