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When Interest Rate Parity (IRP)holds Between Two Different Countries X

Question 7

Multiple Choice

When Interest Rate Parity (IRP) holds between two different countries X and Y,your decision to invest your money will:


A) be indifferent between country X and country Y.
B) not involve forward hedging.
C) depend on which country initiated the IRP.
D) not involve the foreign exchange rates.

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