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Question : Which of the following is not a type of exchange rate determination?

Option 1: Interest rate parity

Option 2: Purchasing power parity

Option 3: Balance of payments parity

Option 4: Capital account parity


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Balance of payments parity


Solution : The correct answer is (c) Balance of payments parity

Balance of payments parity is not a recognized concept in exchange rate determination. The other options, interest rate parity, purchasing power parity, and capital account parity, are widely recognized theories and frameworks used to explain and analyze exchange rate movements.

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