The Interest Rate on a 1-Year Canadian Security Is 7

question 24

Multiple Choice

The interest rate on a 1-year Canadian security is 7.8%.The current exchange rate is C$ = US $0.79.The 1-year forward rate is C$ = US $0.77.The return (denominated in U.S.$) that a U.S.investor can earn by investing in the Canadian security is

• A)3.59%.
• B)4.00%.
• C)5.07%.
• D)8.46%.

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Definitions:

Socialization

The lifelong process of inheriting and disseminating norms, customs, and ideologies, providing an individual with the skills necessary for participating within their own society.

Decreasing Prevalence

A decline in the frequency or rate of occurrence of an event, condition, or disease in a population over time.

Diverse Family Forms

Variations in family structures beyond the traditional nuclear family, including single-parent families, blended families, and same-sex parenting households.

Benefited

Received an advantage, gain, or improvement in condition or situation.