The theory of international exchange that holds that exchange rates adjust to offset differences in countries inflation rates in the ?

Related Mcqs:

The fall in value of one currency relative to another is ?

A. a depreciation of a currency B. a strengthening of a currency C. a floating of a currency D. an appreciation of a currency...

If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?

A. depreciate under a system of fixed exchange rates B. depreciate under a system of floating exchange rates C. appreciate under a system of floating exchange rates D. appreciate under a system of floating fixed rates...

The exchange rate is kept the same across geographically separate markets by ?

A. hedging B. speculation C. government regulation D. arbitrage...

An important feature of a _______ is that the holder has the right but not the obligation to buy or sell currency ?

A. Swap B. foreign exchange arbitrage C. foreign exchange option D. futures market contract...

Currency speculation is _____ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations ?

A. destabilizing B. stabilizing C. inflationary D. deflationary...