Suppose the Interest Rate in Canada Is 4% While It

question 94

Multiple Choice

Suppose the interest rate in Canada is 4% while it is 3% in the U.S. The indirect spot rate is C$1.02. What is the indirect 1-year forward rate?

• A) C$1.0299
• B) C$1.0608
• C) C$1.0200
• D)C$1.0302

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Pharyngitis

An inflammatory condition of the throat (pharynx) causing soreness, often due to an infection.

Mydriasis

Dilation of the pupils of the eyes, which can be caused by disease, trauma, or the use of certain drugs.

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The concentration of lithium in the bloodstream, monitored in patients treated with lithium for bipolar disorder to prevent toxicity.

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A heightened state of irritability or restlessness, often leading to increased unease or aggressive behaviors.