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Q. What is the interest parity condition?
Answer: The circumstance that the expected returns on deposits of any two currencies are equal when measured in the same currency is called the interest parity condition. It involve that potential holders of foreign currency deposits view them as equally desirable assets that is risk is assumed away. In the notational forms:
R$ = RE + (Ee $/E - E$/E) / E$/E.
What is the integration of RM in the international economic structures
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What are the two main base of foreign trade ?
The Arguments for Flexible Exchange Rates
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theory of opportunity cost?
oppotunity cost theory of international trade.Explanation of the theory
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