Suppose That the U

question 16

Multiple Choice

Suppose that the U.S. interest rate is 5 percent and the Japanese interest rate is 1 percent. The effect of this difference in the foreign exchange market is that

• A) a Japanese investor is guaranteed to make an additional 4 percent in yen terms by investing in the United States.
• B) investors expect the yen to depreciate against the dollar.
• C) all funds flow to the United States to get the higher interest rate.
• D) investors expect the yen to appreciate against the dollar.

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Definitions:

Maintenance Activities

Support the emotional life of the team as an ongoing social system.

Intergroup Competition

The rivalry between different groups or teams, used as a strategy to boost motivation or performance by fostering a sense of competition.

Internal Loyalty

Devotion and commitment an employee feels towards their organization or team, often resulting in increased motivation, productivity, and a willingness to go above and beyond.

Disruptive Entrants

New players in an industry that challenge and change the traditional dynamics through innovative business models or technology.