Q77 Single choice Mark for later The Interest Rate Parity Theorem states that: A Interest rates in different currencies will tend to move into line with each other over time B Interest rates in different currencies differ due to differences in expectations about inflation C Selling a low interest rate currency to invest a high interest rate currency will only be profitable if one hedges the currency risk D Selling a low interest rate currency to invest in a high interest rate currency should not be profitable if one hedges the currency risk Correct answer