What Is the Expected Dollar Rate of Return on Dollar

question 55

Multiple Choice

What is the expected dollar rate of return on dollar deposits if today's exchange rate is $1.10 per euro, next year's expected exchange rate is $1.165 per euro, the dollar interest rate is 10%, and the euro interest rate is 5%?

• A) 10%
• B) 11%
• C) -1%
• D) 0%
• E) 5%

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Definitions:

Radio Advertising

The use of radio broadcasts to promote products or services, taking advantage of the medium's wide reach to target specific demographics.

Cost-Effective

An action or strategy that provides the best possible outcome or value for the amount of money spent.

Print Advertising

A form of marketing communication that uses physically printed media, like newspapers and magazines, to reach target audiences.

Narrowcasting

A marketing strategy that targets a specific or niche audience, as opposed to broadcasting to a wider, general audience.