Suppose the Exchange Rate Is 10 Pesos Per Dollar and You

question 11

Multiple Choice

Suppose the exchange rate is 10 pesos per dollar and you use $1000 to purchase a one-year Mexican bond that pays 10% interest. Next year, the exchange rate is 11 pesos per dollar. Assuming you convert your funds back to U.S. dollars, how much money will you have in one year?

• A)$1000
• B)$1100
• C)$91
• D)$0

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The percentage of people within a population who have the ability to read and write, often used as an indicator of educational attainment and social development.

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