Multiple Choice
According to the interest parity condition,if the domestic interest rate is 10 percent and the foreign interest rate is 12 percent,then the expected ________ of the foreign currency must be ________ percent.
A) appreciation;4
B) appreciation;2
C) depreciation;2
D) depreciation;4
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q29: If the dollar depreciates relative to the
Q30: If the interest rate is 7 percent
Q31: _ in the domestic interest rate causes
Q32: An agreement to exchange dollar bank deposits
Q33: A decrease in the expected future domestic
Q35: If the inflation rate in the United
Q36: A decrease in the foreign interest rate
Q37: The _ suggests that the most important
Q38: Anything that increases the demand for foreign
Q39: _ in the foreign interest rate causes