Solved: Differential in the forward market for a currency, Finance Basics

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Differential in the forward market for a currency

Problem:

The theory of interest rate parity states that the annual percentage differential in the forward market for a currency quated in terms of another currency is equal to the approximate difference in _______ prevailing in the two countries

a. interest rates

b. trade deficit rates

c. GNP growth rates

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Finance Basics: Differential in the forward market for a currency

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Finance Basics: Differential in the forward market for a currency

Reference No:- TGS02040193

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