With a 10 Percent Interest Rate on Dollar Deposits,and an Expected

question 95

Multiple Choice

With a 10 percent interest rate on dollar deposits,and an expected appreciation of 7 percent over the coming year,the expected return on dollar deposits in terms of the dollar is

• A)3 percent.
• B)10 percent.
• C)13.5 percent.
• D)17 percent.

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Definitions:

Stocks And Bonds

Financial instruments representing ownership in companies (stocks) and debt obligations (bonds).

Real Estate

Property consisting of land and the buildings on it, along with its natural resources.

Federal Reserve

The primary banking authority in the United States, tasked with overseeing monetary policy, regulating banks, and providing financial services.

Central Bank

A national financial institution that provides financial and banking services for its country’s government and commercial banking system, and implements the government’s monetary policy.