The Spot Exchange Rate for Indian Rupees Is 44 INR/CAD

question 27

Multiple Choice

The spot exchange rate for Indian rupees is 44 INR/CAD.The one-year forward exchange rate is 46 INR/CAD and the one-year Canadian interest rate is 5%.What is the implied one-year interest rate in India?

• A)8.56%
• B)9.24%
• C)9.77%
• D)10.24%
• E)11.01%

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Definitions:

Pigmentation

The coloring of a person's skin, hair, or eyes due to the deposition of melanin, a natural pigment produced by certain cells called melanocytes.

Incomplete Dominance

A genetic phenomenon where the phenotype of a heterozygote is intermediate between the phenotypes of the two homozygotes.

Thalassemia

A blood disorder characterized by the body producing an abnormal form of hemoglobin, resulting in anemia.

Polymorphism

The occurrence of something in multiple forms or variants, frequently used in genetics to describe the variation in DNA sequence among individuals.