The theory according to which the difference between expected appreciation and foreign interest must be equal to domestic interest rate, is called Options: A . &nbspinterest rate parity theorem B . &nbspappreciation parity theorem C . &nbspdomestic parity theorem D . &nbspforeign interest parity theorem

The theory according to which the difference between expected appreciation and f

Question

The theory according to which the difference between expected appreciation and foreign interest must be equal to domestic interest rate, is called

Options:

A . interest rate parity theorem

B . appreciation parity theorem

C . domestic parity theorem

D . foreign interest parity theorem

Answer: Option A
Answer: (a).interest rate parity theorem

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