Suppose the Interest Rate in Canada Rises and the Interest

question 101

Multiple Choice

Suppose the interest rate in Canada rises and the interest rate in Japan remains the same. Interest rate parity implies that given equal risk,

• A)the inflation rate is higher in Japan.
• B)Japanese financial investments are less profitable.
• C)the yen is expected to depreciate against the dollar.
• D)the yen is expected to appreciate against the dollar.
• E)Canadian financial investments are less profitable.

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Definitions:

Alternative Splicing

A genetic mechanism in which exons are spliced in different ways to produce different mRNAs from a single gene.

Eukaryotic DNA

The genetic material within the nucleus of eukaryotic cells, organized into chromosomes, coding for the cell's structure and function.

Introns

Non-coding sections of DNA within a gene that are removed via RNA splicing during the process of transcription.

Exons

Segments of DNA or RNA that encode portions of the final mature RNA product after splicing has removed introns.