The important thing to remember about foreign exchange rate determination is that parity conditions, asset approach, and balance of payments approaches are ________ theories rather than ________ theories.
A) competing; complementary
B) competing; contemporary
C) complementary; contiguous
D) complementary; competing

Question

Quizplus · Accepted Answer

The three approaches mentioned (parity conditions, asset approach, and balance of payments approaches) are not competing but rather complementary theories that provide different perspectives on how exchange rates are determined.

The Important Thing to Remember About Foreign Exchange Rate Determination