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IRPT

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › IRPT

  • This topic has 3 replies, 2 voices, and was last updated 12 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 16, 2012 at 9:52 am #55378
    nomantufail
    Member
    • Topics: 17
    • Replies: 13
    • ☆

    Which rate of interest should be used for forecasting exchange rate through interest rate parity theory ?
    Borrowing rate or
    Deposit rate

    Thanks and regards

    November 17, 2012 at 8:54 pm #107626
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    In theory you would get the same answer if you used borrowing rates or if you used deposit rates. It has never been asked in the exam, and if it was then I would expect him to only give one interest rate in each country.

    November 17, 2012 at 9:09 pm #107627
    nomantufail
    Member
    • Topics: 17
    • Replies: 13
    • ☆

    Thanks sir

    November 17, 2012 at 9:33 pm #107628
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    You are welcome 🙂

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