Assume That the U

question 11

Multiple Choice

Assume that the U.S. interest rate is 11% while the interest rate on the euro is 7%. If euros are borrowed by a U.S. firm, they would have to ____ against the dollar by ____ in order to have the same effective financing rate from borrowing dollars.

• A)depreciate; about 3.74%
• B)appreciate; about 3.74%
• C)appreciate; about 4.53%
• D)depreciate; about 4.53%

---

Definitions:

Mood Disorders

A category of mental health disorders characterized by a serious change in mood that cause disruption to life activities, including major depressive disorder and bipolar disorder.

Stratified Sample

A sample drawn so that identified subgroups in the population are represented proportionately in the sample.

Asian-American Students

Students of Asian origin, typically in the United States, who may face unique cultural, educational, and social challenges and successes.

Stream of Consciousness

A narrative mode or method that attempts to capture the flow of thoughts and feelings running through the mind.