Which of the following theories can be assessed using data that exists at one specific point in time?

Question

Quizplus · Accepted Answer

Interest rate parity (IRP) is a theory that compares the interest rates of different currencies to determine the forward exchange rate. This theory can be assessed using data that exists at one specific point in time as it only requires information on the current interest rates of the currencies being compared. The other options, purchasing power parity (PPP) and international Fisher effect (IFE), require data on inflation rates and expected changes in exchange rates over time, which cannot be captured at a single point in time.

Which of the Following Theories Can Be Assessed Using Data