📊 International Financial Management
Q. A firm that buys foreign exchange in order to take advantage of higher foreign interest rates is
  • (A) speculating.
  • (B) demonstrating purchasing power parity.
  • (C) engaging in interest rate arbitrage.
  • (D) responding to fluctuations in the business cycle.
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✅ Correct Answer: (B) demonstrating purchasing power parity.

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