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​Which of the Following Theories Suggests That the Percentage Difference

Question 30

Multiple Choice

​Which of the following theories suggests that the percentage difference between the forward rate and the spot rate depends on the interest rate differential between two countries?


A) ​purchasing power parity (PPP)
B) ​triangular arbitrage
C) ​international Fisher effect (IFE)
D) ​interest rate parity (IRP)

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