Suppose That You Expect During the Next Year the Dollar

question 94

Multiple Choice

Suppose that you expect during the next year the dollar will appreciate against the pound from 0.5 pound to the dollar to 0.75 pound to the dollar. How much will you expect to make on an investment of $10,000 in British government securities that will mature in one year and pay interest of 8%?

• A)-59.5%
• B)-28%
• C)8%
• D)28%

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Definitions:

Wealth Source

The origin or means by which an individual, group, or nation acquires economic resources or wealth.

Richest Families

Families with the highest net worth or income in a given region or globally, often measured in terms of assets or wealth accumulation.

Meagre Savings

A small amount of money saved, often insufficient to cover significant emergencies or long-term needs.

Plight

A dangerous, difficult, or otherwise unfortunate situation that someone or a group of people faces.