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Interest Rate Parity (IRP) is best defined as a) occurring when a government brings its domestic interest rate in line with other major financial markets.
Interest Rate Parity (IRP) is best defined as
a) occurring when a government brings its domestic interest rate in line with other major financial markets.
b) occurring when the central bank of a country brings its domestic interest rate in line with its major trading partners.
c) an arbitrage condition that must hold when international financial markets are in equilibrium.
d) the act of simultaneously buying and selling the same or equivalent assets or commodities for the purpose of making certain guaranteed profits.
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