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If interest rate parity exists, and the forward rate is an accurate estimator of the future spot rate, the foreign financing rate will be ____
If interest rate parity exists, and the forward rate is an accurate estimator of the future spot rate, the foreign financing rate will be ____ the home financing rate.
greater than
similar to
none of the options listed
lower than
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
9th Edition
0321598903, 978-0321598905
