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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Interest rates—-Kit mcq
Which of the following relationships suggests that current long term interest rates can be used to predict future short tern interest rates?
a)Expectation theory
b)Fisher effect
c)Interest rate parity
d)Purchasing power parity theory
Sir correct ans is A. Sir does expectation theory states that current long term interest rates can be used to predict future short tern interest rates?
Yes – that is why the correct answer is (a).
