MCQOPTIONS
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MCQOPTIONS
| 1. |
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 |
| Answer» B. larger will be the forward premium of the foreign currency | |