info@avatto.com
+91-9920808017
0. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below. Assertion (A): The nominal interest rate comprises of a real interest rate and an expected rate of inflation, and it adjusts when the inflation rate is expected to change. Hence, in the perfect international capital markets, the real rate of returns are equal in the two countries. Reason (R): The international Fisher Effect states that the nominal interest rate differential must be equal to the expected inflation rate the differential in the two countries. Code:
Both (A) and (R) are correct and (R) is the right explanation of (A).
Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(A) is correct, but (R) is not correct.
Both (A) and (R) are incorrect.
Your email address will not be published. Required fields are marked *
Report
Name
Email
Website
Save my name, email, and website in this browser for the next time I comment.
Comment
Login with Facebook
Login with Google
Forgot your password?
Lost your password? Please enter your email address. You will receive mail with link to set new password.
Back to login
