The
interplay between interest rate differentials and exchange rates such
that both adjust until the foreign exchange market and the money market
reach equilibrium is called the:
A.
purchasing power parity theory.
B.
balance of payments quantum theory.
C.
arbitrage markets theory.
D.
interest rate parity theory.
A.
purchasing power parity theory.
B.
balance of payments quantum theory.
C.
arbitrage markets theory.
D.
interest rate parity theory.
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