Assume That in Recent Months, Most Currencies of Industrialized Countries

question 8

Multiple Choice

Assume that in recent months, most currencies of industrialized countries depreciated substantially against the dollar. Assume that their interest rates were similar to the U.S. interest rate. If non-U.S. firms invested in U.S. Treasury securities during this period, their effective yield would have been:​

• A) ​negative.
• B) ​zero.
• C) ​positive, but less than the interest rate of their respective countries.
• D) ​more than the interest rate of their respective countries.

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Definitions:

Competitive

Characterized by or involving a contest, rivalry, or competition.

Anger and Hostility

Emotional states where anger involves upset or displeasure, and hostility often includes aggressive attitudes and behaviors.

Coronary Risk

The likelihood or risk factors associated with the development of coronary heart disease, a condition characterized by reduced blood flow to the heart muscle.

Type A Personality

A personality style marked by a strong competitive orientation, impatience and urgency, and anger and hostility.