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:

UWB

Ultra-Wideband, a wireless communication protocol that uses a very low energy level for short-range, high-bandwidth communications over a large portion of the radio spectrum.

NFC

Near Field Communication (NFC) is a set of communication protocols that allow two electronic devices, one of which is usually a portable device such as a smartphone, to establish communication by bringing them within a few centimeters of each other.

Short-Range Wireless

Wireless communication technologies designed for short distances, such as Wi-Fi, Bluetooth, and NFC, typically used in consumer electronics for connecting devices.

Mobile Wallets

Digital versions of traditional wallets that someone can have on their mobile devices, allowing them to carry out electronic transactions.