Assume That There Are Several Foreign Currencies That Exhibit a Higher

question 8

Multiple Choice

Assume that there are several foreign currencies that exhibit a higher interest rate than the U.S. interest rate. The U.S. firm has a higher probability of generating a higher effective yield on a portfolio of currencies (relative to the domestic yield) if:

• A) the foreign currency movements against the U.S. dollar are highly correlated.
• B) the foreign currency movements against the U.S. dollar are perfectly positively correlated.
• C) the foreign currency movements against the U.S. dollar exhibit low correlations.
• D) none of the answers above would have any impact on the probability of a foreign cash investment generating a higher effective yield than a U.S. investment.

Grasp the fundamental principles of educational systems and approaches to bilingual schooling.

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Learn techniques for creating positive emphasis in messaging.

Recognize and apply the appropriate use of professional salutations in business communication.

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Definitions:

Surplus

An excess amount of a commodity or service, exceeding what is normally utilized or required.

Government

The governing body of a nation, state, or community responsible for leadership, policy making, and administration.

Ethanol Program

A governmental policy initiative aimed at promoting the use of ethanol as a biofuel, to reduce dependency on fossil fuels and decrease greenhouse gas emissions.

Imported Ethanol

Ethanol fuel sourced from foreign countries, used primarily as a biofuel additive for gasoline.