The Yield on a 1-Year Bill in the U

question 38

Multiple Choice

The yield on a 1-year bill in the U.K.is 8% and the present exchange rate is 1 pound = U.S.$1.60.If you expect the exchange rate to be 1 pound = U.S.$1.50 a year from now,the return a U.S.investor can expect to earn by investing in U.K.bills is

• A)-6.7%
• B)0%
• C)8%
• D)1.25%
• E)none of the above

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An educational method where a response initially triggered by a second stimulus comes to be triggered by the first stimulus after the two stimuli have been paired multiple times.

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