CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

Which parity condition is most likely to hold in either the short or medium term?

A. covered interest rate parity.
B. uncovered interest rate parity.
C. purchasing power parity.
Correct Answer: A

Except for covered interest rate parity, the key international parity conditions rarely hold in either the short or medium term. They tend to hold over relatively long horizons.

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