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FIN 4213 Exam 1 Guide 2027: MNC & Forex Practice Q&A Exam
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24

December 2025

2025/2026

A+
Assume that interest rate parity holds, and the euro's interest rate is 9% while the U.S. interest rate is 12%. Then the euro's interest rate increases to 11% while the U.S. interest rate remains the same. As a result of the increase in the interest rate on euros, the euro's forward ____ will ____ in order to maintain interest rate parity. a. discount; increase b. discount; decrease c. premium; increase d. premium; decrease - answer-D National Bank quotes the following ...
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