With a 10 Percent Interest Rate on Dollar Deposits,and an Expected

question 75

Multiple Choice

With a 10 percent interest rate on dollar deposits,and an expected appreciation of 7 percent over the coming year,the expected return on dollar deposits in terms of the foreign currency is

• A)3 percent.
• B)10 percent.
• C)13.5 percent.
• D)17 percent.

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