Interest Rate Parity (IRP)is Best Defined As

Multiple Choice

Interest Rate Parity (IRP) is best defined as:

A) when a government brings its domestic interest rate in line with other major financial markets.
B) when the central bank of a country brings its domestic interest rate in line with its major trading partners.
C) a zero arbitrage condition that must hold when international financial markets are in equilibrium.
D) None of these