The Figure Given Below Depicts the Foreign Exchange Market for British

question 125

Multiple Choice

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

-Suppose a Japanese investor purchases a dollar deposit that yields 5 percent interest at the end of a year. What will be the approximate return in terms of yen at maturity if the exchange rate moves from $1 = ¥100 to $1 = ¥105 during the year?

• A)1 percent
• B)5 percent
• C)10 percent
• D)20 percent
• E)0 percent

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Definitions:

Chart Of Accounts

An organized list of all accounts in the general ledger of a company, categorizing assets, liabilities, equity, revenues, and expenses.

Numbering System

An organized scheme for assigning unique identifiers to entities within a specific context or system.

Cash Account

A financial account that tracks the flow of cash transactions, including both receipts and disbursements.

Cash Receipts

The collection of money (cash, checks, wire transfers) by a business from its customers.