The Current Spot Rate for the Norwegian Krone Is $1

question 63

Multiple Choice

The current spot rate for the Norwegian krone is $1 = NKr6.83. The expected inflation rate in Norway is 2 percent and in the U.S. 4 percent. A risk-free asset in the U.S. is yielding 5 percent. What risk-free rate of return should you expect on a Norwegian security?

• A) 2%
• B) 3%
• C) 4%
• D) 5%
• E) 6%

---

Definitions:

Social Media Tools

Digital tools and platforms used for creating, sharing, or exchanging information and ideas in virtual communities and networks.

Brand-building

The process of creating and enhancing a brand's identity, reputation, and visibility in the market.

Traditional Media

Forms of mass communication existing before the advent of digital media, including newspapers, magazines, TV, and radio broadcasting.

Global Brand

A brand that is recognized and has a consistent presence across multiple countries worldwide, known for delivering universally appealing products or services.