Question: NOTE: Please answer both multiple-choice otherwise don't answer. explain your choice. Thanks 4- interest rate parity condition, which variable can be considered as the forward

NOTE: Please answer both multiple-choice otherwise don't answer. explain your choice. Thanks

4- interest rate parity condition, which variable can be considered as the forward exchange rate?

A) Domestic price level - foreign price level

B) Domestic interest rate

C) Current exchange rate

D) Foreign interest rate

E) Expected exchange rate

5- Which of the following balance of payments accounts includes the value of a foreign financial asset bought by United States resident?

A) Finance account

B) Capital account

D) Current account

C) Reserve account

D) Statistical discrepancy

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