How Much Would You Expect to Receive for a Nominal

question 30

Multiple Choice

How much would you expect to receive for a nominal interest rate in Holland if funds can be invested in the U.S.at a rate of 7% when inflation is expected to be 4% in the U.S.and 8% in Holland?

• A) 5.19%
• B) 7.93%
• C) 9.08%
• D) 11.11%

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