If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent annually, this means that between the purchase date and the time of maturity:
a. the Korean won (KRW) has depreciated 4 percent against the U.S. dollar.
b. the dollar price of the Korean won (KRW) has risen by 10 percent.
c. the percentage change in the dollar per Korean won exchange rate is 6 percent.
d. the dollar proceeds from the Korean bond are 4 percent higher than the initial dollar investment.
e. the dollar has depreciated 16 percent against the Korean won.
a
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Between 1821 and 1930, the U.S. gained a comparative advantage in the production of agricultural goods
Indicate whether the statement is true or false
Assume the Federal Reserve increases the required reserve ratio from 10 to 20 percent and reserves are $80 billion. Then the change in the money supply will be
a. $80 billion. b. $20 billion. c. $400 billion. d. $800 billion. e. none of the above
Which of the following is true of a recessionary gap? a. It develops when the expected price level is less than the actual price level
b. In the long run, this gap closes when resource suppliers negotiate lower resource payments. c. It measures the amount by which actual output is greater than the economy's potential output. d. In the long run, this gap closes when the short-run aggregate supply curve shifts rightward. e. In the long run, this gap closes when the aggregate demand curve shifts rightward.
We study the simple model of competitive markets because it helps to:
A. show how poorly the economy actually functions. B. provide useful insights to markets that are not perfectly competitive. C. indicate whether buyers or sellers matter more. D. show how the government controls the economy.