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When Interest Rate Parity ( IRP ) does not hold Question 2 2 options: the financial markets are in equilibrium. the financial markets are in

When Interest Rate Parity

(

IRP

)

does not hold

Question

22

options:

the financial markets are in equilibrium.

the financial markets are in equilibrium and there are opportunities for covered interest arbitrage.

there are opportunities for covered interest arbitrage.

there is usually a high degree of inflation in at least one country.

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