If the international Fisher effect (IFE) exists, then a UK firm that has access to banks offering high interest rates in deposits denominated in foreign currencies should:
A) invest in the foreign deposits since they will, on average, generate higher effective yields than a UK deposit.
B) invest in the UK deposits since they will, on average, generate higher effective yields than a foreign deposit.
C) invest in the UK deposits since they will, on average, generate similar effective yields as a foreign deposit.
D) invest in the foreign deposits since they will, on average, generate similar effective yields as a UK deposit.
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