Suppose That the One-Year U

question 51

Multiple Choice

Suppose that the one-year U.S.interest rate is 8% and the equivalent one-year India interest rate is 12%.Using the exact covered interest parity,the dollar is expected to:

• A) depreciate by 3.6%.
• B) depreciate by 50%.
• C) appreciate by 3.6%
• D) appreciate by 50%.

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Definitions:

Equal Protection Clause

A provision of the 14th Amendment to the U.S. Constitution guaranteeing that no state shall deny any person within its jurisdiction equal protection of the laws.

Constitution

The fundamental principles and established precedents according to which a state or other organization is governed.

Rehabilitation Act

U.S. legislation that prohibits discrimination on the basis of disability in programs conducted by Federal agencies or receiving federal financial assistance.

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.