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QUESTION 15 If Interest Rate Parity fails to hold A. pressure from arbitrageurs should bring exchange rates and interest rates back into line. B. it

QUESTION 15

If Interest Rate Parity fails to hold

	A.	pressure from arbitrageurs should bring exchange rates and interest rates back into line.
	B.	it may fail to hold due to transactions costs and counterparty risks.
	C.	it may fail to hold due to government-imposed capital controls.
	D.	it may fail to hold due to bank regulation.
	E.	All of the options are correct.

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