With a 10 percent interest rate on dollar deposits, and an expected appreciation of 7 percent over the coming year, the expected return on dollar deposits in terms of the foreign currency is
A) 3 percent.
B) 10 percent.
C) 13.5 percent.
D) 17 percent.
D
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A discount bond involves
A) interest payments from the borrower to the lender periodically during the life of the loan. B) payment by the borrower to the lender of the face value of the loan at maturity. C) no payment of principal by the borrower to the lender. D) payment of interest by the borrower to the lender every six months during the life of the loan.
Almost everyone is affected directly or indirectly by high rates of employment or high and variable rates of inflation
a. True b. False Indicate whether the statement is true or false
If the opportunity cost of capital is below the rate of return to capital in the perfectly competitive beauty salon industry,
a. resources will flow into the industry. b. beauty salon owners must be earning negative economic profit. c. the beauty salon industry cannot be in long-run equilibrium. d. beauty salon owners must be earning negative marginal revenue at their current levels of output.
A consumer is willing to pay $5 for a ball. If the market price of the ball increases from $2 to $3, consumer surplus will _____
a. decrease by $1 b. increase by $2 c. reduce by $5 d. increase by $3