The Interest Rate on a One Year Security in the United

question 54

Multiple Choice

The interest rate on a one year security in the United States is 3%,while the interest rate on a one year security in German is 8%.If the current exchange rate is 1 EURO = $1.50,then the future exchange rate in one year,according to the international Fisher effect,is

• A) $1.431.
• B) $1.425.
• C) $1.575.
• D) $1.385.

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Definitions:

Load Test

A test for determining the condition of charge for a battery.

Lead-Acid Battery

A type of rechargeable battery that uses lead dioxide and sponge lead, with an electrolyte of sulfuric acid, commonly used in vehicles and backup power systems.

Terminal Voltage

The voltage measured across the terminals of a device, which can be affected by the device's internal resistance and the current flowing through it.

Nicad Battery

A rechargeable battery variety utilizing nickel oxide hydroxide and cadmium metal as its electrode materials.