- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 3. A Long-Term Framework for Exchange Rates
CFA Practice Question
Which parity states that interest rate differentials are a good predictor of future exchange rate changes?
B. Uncovered interest rate parity.
C. the international Fisher effect.
A. Covered interest rate parity.
B. Uncovered interest rate parity.
C. the international Fisher effect.
Correct Answer: B
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