According to the Interest Parity Condition,if the U

question 86

Multiple Choice

According to the interest parity condition,if the U.S. interest rate is 2 percent and the Japanese interest rate is 4%,and the current exchange rate is 100 yens per dollar. Then the market expects the future exchange rate to be ________ yens per dollar.

• A)102
• B)1.02
• C)98
• D)0.98

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Definitions:

Organizational Markets

Markets composed of businesses and other organizations that buy goods and services for use in their operations or in the production of other goods and services.

Amazon.com

An American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.

Contact Lenses

Thin lenses placed directly on the surface of the eye to correct vision or for cosmetic purposes.

Reseller

A company or individual that purchases goods or services for the purpose of selling them to others rather than for personal use.