**A. interest rate parity theorem**

B. appreciation parity theorem

C. domestic parity theorem

D. foreign interest parity theorem

**Correct Answer: **interest rate parity theorem ✔

Last Updated: **May 12, 2023**

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→The theory according to which the difference between expected appreciation and foreign interest must be equal to domestic interest rate, is called _____________?

Related MCQs

- The reasons for smaller exposure of foreign exchange than US money center are __________?
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- The theory which considers the change in exchange rate with the fluctuations in inflation rates is classified as __________?

**A. interest rate parity theorem**

B. appreciation parity theorem

C. domestic parity theorem

D. foreign interest parity theorem

**Correct Answer: **interest rate parity theorem ✔

Last Updated: **May 12, 2023**