Purchasing power parity theory signifies which one of the following?

A. Ability to exchange one currency for another at a given conversion rate and in terms of the usability of a currency for foreign transactions

B. Which states that exhange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries

C. When one party of an economic transaction has equal degree of information in currency market abdilt it and shared equally to arrive at uniform foreign exchange selection decision

D. No one party can significantly influence foreign exchange rate in the market and all will be guided by asymmetric information

Answer: Option B