Which One of These Statements Is Correct

Which one of these statements is correct?

A) Relative purchasing power parity says that the expected spot rate 1 year from now is equal to the current spot rate multiplied by (1 + U.S.inflation rate - Foreign inflation rate) .
B) The interest rate parity formula is based on real rates of interest.
C) An indirect quote is the number of dollars required to purchase one unit of a foreign currency.
D) Uncovered interest parity is a combination of the unbiased forward rate and interest rate parity.
E) If the euro per dollar is more expensive in the forward market than in the spot market,the euro is selling at a discount.

Correct Answer:

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