Theory according to which difference between expected appreciation and foreign interest must be equal to domestic interest rate is called

A interest rate parity theorem
B appreciation parity theorem
C domestic parity theorem
D foreign interest parity theorem

Correct Answer: interest rate parity theorem

Theory according to which difference between expected appreciation and foreign interest must be equal to domestic interest rate is interest rate parity theoremcalled. Interest rate parity (IRP) is a theory in which the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. which of the following must vote in favor of Bill 1 ?
A J
B K
C L
D O
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. If any bill is to be passed,which of the following must be among the legislators who vote in favor of it?
A J
B K
C M
D N
For each question, select the word/phrase you think is closet in meaning to the word/phrase underlined. : The supervisor showed great enthusiasm and appreciation "contraty" to what the labors had expected.
A in support of
B objection
C opposition
D complement
The supervisor showed great enthusiasm and appreciation "contrary to" what the laborers had expected. (Meaning of the quotations word/phrase)
A in support of
B objection
C opposition
D complement
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. which of the following cannot be true ?
A J and K vote in favor of the same bill
B J and O vote in favor of the same bill
C J votes in favor of one bill and against two bills
D k votes in favor of two bills and against one bill
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. If M votes the same way that O dose on all three bills, which of the following can be determined ?
A Bill I will be passed
B Bill I will be defeated
C Bill 2 will be passed
D Bill 2 will be defeated
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. The maximum number of favorable votes that Bill 2 could receive is ---
A Two
B Three
C Four
D Five
Based on interest rate parity, the larger the degree by which the foreign interest rate exceeds the UK interest rate, the.
A larger will be the forward discount of the foreign currency
B larger will be the forward premium of the foreign currency
C smaller will be the forward premium of the foreign currency
D smaller will be the forward discount of the foreign currency
The manager of a radio program is going to feature six vocalists--M,N,P,Q,R and S on her half hour radio show during the course of one week.She will feature one vocalist on the show each day from Monday through Saturday.The manager must schedule the vocalists for the show according to the following conditions: *M must be featured earlier in the week than R. *P must be featured on Tuesday. * Q must be featured on the day immediately before or immediately after the day on which N is featured. If S is to be featured on Friday,M must be featured on---
A Monday
B Tuesday
C Wednesday
D Friday
According to ADB/World bank, the expected GDP growth rate of Bangladesh in the current fiscal year is expected to be close to :
A 9%
B 8%
C 7%
D 5%

Next steps