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The commodity currency interest rate is 4%pa. The terms currency interest rate is 6%pa Suppose you know that speculators on average expect the commodity currency
The commodity currency interest rate is 4%pa. The terms currency interest rate is 6%pa Suppose you know that speculators on average expect the commodity currency to appreciate by 3%pa. This could be explained by
A. the terms currency being seen as the more risky currency
B. the commodity currency being seen by speculators as the higher risk currency
C. uncovered interest parity
D. covered interest parity
E. real lnterest parity
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