Annualized Interest Rates in the U

question 34

Multiple Choice

annualized interest rates in the U.S. and Switzerland are 10% and 4%, respectively, and the 90?day forward rate for the Swiss franc is $.3864, at what current spot rate will interest rate parity hold?

• A) $.3902
• B) $.3874
• C) $.3807
• D) $.3792

---

Definitions:

Blindness

The lack of visual perception due to physiological or neurological factors.

Fine Discriminations

Refers to the ability to distinguish subtle differences between similar stimuli.

Young Infants

refers to the earliest stage in human development, often considered to be the period from birth to 12 months old, characterized by rapid physical, cognitive, and emotional growth.

Senescence

The gradual deterioration of functional characteristics in organisms, leading to aging and an increased vulnerability to death.