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Basic Question 12 of 20

Interest rate parity is ensured by

A. The government.
B. The World Bank.
C. Arbitrage.

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

explain spot and forward rates and calculate the forward premium/discount for a given currency;

calculate the mark-to-market value of a forward contract;

CFA® 2025 Level II Curriculum, Volume 1, Module 8.