Assume That the Current Exchange Rate Between U

question 2

Multiple Choice

Assume that the current exchange rate between U.K.pound and the U.S.dollar is 2 (E = 2.0) .If interest parity holds,and the U.S.interest rate is 6% while the U.K.interest rate is 8%,the expected exchange rate in one year is

• A)1)98.
• B)1)99.
• C)2)01.
• D)2)02.
• E) 2.04.

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Definitions:

Personalities

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors, thoughts, and emotions.

Dissociative Identity Disorder

A mental disorder characterized by the presence of two or more distinct personality states or identities in an individual.

Mutually Amnesic

Characterizes a state where two or more individuals mutually have no memory of certain events or experiences.