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Suppose That the Interest Rate Is 4 Percent

question 238

Multiple Choice

Suppose that the interest rate is 4 percent.Which of the following has the greatest present value?


Definitions:

US$ Per C$

The exchange rate that defines how much one can buy in US dollars (US$) with one Canadian dollar (C$).

Importer

An individual or organization that buys goods or services from a foreign country for use in their own country.

US$1,500 Item

An item priced at or having a value of one thousand five hundred United States dollars.

¥ Per A$

The exchange rate showing how much Japanese yen (¥) one Australian dollar (A$) can buy.

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