The Expected Return on Dollar Deposits in Terms of Foreign

question 46

Multiple Choice

The expected return on dollar deposits in terms of foreign currency can be written as the ________ of the interest rate on dollar deposits and the expected appreciation of the dollar.

• A)product
• B)ratio
• C)sum
• D)difference

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Definitions:

Resources Are Limited

A principle stating that the availability of physical, natural, and human resources is finite, necessitating choices and trade-offs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one could have received by taking a different decision.

Attending College

The act of enrolling in and going to a college or university to pursue higher education.

Short-Run Effects

Immediate or temporary outcomes of a policy or economic change that manifest before long-term adjustments can take place.