If the covered interest rate parity (CIRP) is satisfied, a forward discount is expected in the FX market when the foreig

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answerhappygod
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If the covered interest rate parity (CIRP) is satisfied, a forward discount is expected in the FX market when the foreig

Post by answerhappygod »

If the covered interest rate parity (CIRP) is satisfied,
a forward discount is expected in the FX market when the foreign
money market investment offers a higher return than the domestic
money market investment. Is the statement true or false?
Back up your assertion.
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