Use the Following to Answer Questions

question 282

Multiple Choice

Use the following to answer questions :
Scenario: Japan and the United States
Suppose that the interest rate in the United States is 4%, in Japan it is 7%, and financial assets in the two countries are equal in risk.
-(Scenario: Japan and the United States) Refer to the scenario Japan and the United States. Assuming that loans in India and the United States carry equal risk, this implies that:

• A)U.S. lenders will lend to borrowers in India.
• B)Indian lenders will lend to U.S. borrowers.
• C)the interest rate in India will increase further as compared to the U.S. interest rate.
• D)the central bank of India has adopted a more expansionary monetary policy.

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Definitions:

Electrons

Subatomic particles with a negative charge, found orbiting the nucleus of atoms and involved in chemical reactions and electrical conductivity.

Atomic Number

Number of protons in each type of atom.

Mass Number

Number of protons plus the number of neutrons in each atom.

Neutrons

Subatomic particles found in the nucleus of an atom that have no electric charge.