What Is the Expected Dollar Rate of Return on Dollar

question 40

Multiple Choice

What is the expected dollar rate of return on dollar deposits with today's exchange rate at $1.10 per euro, next year's expected exchange rate at $1.165 per euro, the dollar interest rate at 10%, and the euro interest rate at 5%?

• A) 10%
• B) 11%
• C) -1%
• D) 0%
• E) 5%

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Definitions:

Behavior Therapy

A type of psychotherapy that focuses on changing specific behaviors and uses various techniques to stop undesirable habits or behaviors.

Learning Theory

A framework that describes how individuals acquire, retain, and recall knowledge and skills.

Individual

Pertaining to or characterizing a single, separate person or entity, often emphasizing uniqueness or personal identity.

Concentrating

The mental process of focusing one's attention or cognitive resources on a specific task, subject, or activity.