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) An arbitrage condition that must hold when international financial markets are in equilibrium.
D) None of the above