Loan Preference Principle

Loan Preference Principle

The theory that a covered loan is less expensive when its cost is calculated in one currency, it will also be less expensive in all other currencies.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Loan Preference Principle

In foreign exchange, a theory that if a covered loan is less expensive than another loan in one currency, it will be less expensive in all other currencies. See also: Purchasing Power Parity.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved