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    Exam 15: Foreign Exchange: The Structure and Operation of the Fx Market
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    If Interest Rate Parity Holds,the Currency of the Country with the Relatively
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If Interest Rate Parity Holds,the Currency of the Country with the Relatively

Question 1

Question 1

Multiple Choice

If interest rate parity holds,the currency of the country with the relatively _______ interest rates will trade at a forward _______ to the country with the relatively _______ interest rate.


A) high; premium; low
B) low; discount; high
C) high; discount; low
D) None of the given choices

Correct Answer:

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