The Figure Given Below Depicts the Foreign Exchange Market for British

question 5

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-Suppose a U.S. citizen invests $1,000 to purchase a one-year Japanese bond that has an interest yield of 10 percent. If the dollar appreciates 20 percent against the Japanese yen by the maturity date, the dollar value of the proceeds is _____.

• A)$900
• B)$1,100
• C)$1,300
• D)$1,500
• E)$1,200

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