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Interest rate parity formula is as follows Select one: Oa. Ft/e0 = (1 + kh) / (1 + kf) O b. Ft/e0 = (1 +
Interest rate parity formula is as follows Select one: Oa. Ft/e0 = (1 + kh) / (1 + kf) O b. Ft/e0 = (1 + kh) - (1 + kf) O c. Ft/e0 = (1 + kh) x (1 + kf) O d. Ft/e0 = (1 + kh) + (1 + kf) Some of the FX participants use the market to Select one: Oa. Take foreign exchange risk. Ob. Place FX money as time deposits c. Hedge for foreign exchange risk O d. To buy commercial papers. According to Britton Woods Agreement, IMF main function is Select one: a. To promote general economic development Ob. To set interest rates for world currencies Oc. To maintain order in monetary system Od. All the responses Which of the following is an Interest Rate Risk measuring tool Select one: Oa. repricing risk tool b. duration measuring risk tool Oc. All the responses d. Economic Value of Equity tool The gain or loss due to changes in the exchange rate is called Select one: a. Change in world economy Ob. Foreign Exchange Risk Exposure Oc. International trade Od. World Currency Integration
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