The relationship that says that the forward premium or discount is equal to the interest differential is
A) interest rate parity.
B) purchasing power parity.
C) the Fisher equation.
D) the term structure of interest rates.
A
Economics
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Refer to Scenario 14.1. Marco's dominant strategy will give him a net benefit of
A) $45. B) $75. C) $120. D) $150.
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While legislation enacted in 1998 granted the Bank of Japan new powers and greater autonomy, its critics contend that its independence is
A) limited by the Ministry of Finance's veto power over a portion of its budget. B) too great because it need not pursue a policy of price stability even if that is the popular will of the people. C) too great since the Ministry of Finance no longer has veto power over the bank's budget. D) limited since the Ministry of Finance can dismiss senior bank officials.
Economics