If a Dollar Invested in the United States Yields the Same

question 28

Multiple Choice

If a dollar invested in the United States yields the same return as a dollar's worth of yen invested in Japan,then it implies that:

• A)purchasing power parity exists.
• B)the exchange market is in equilibrium.
• C)the dollar/yen exchange rate is fixed.
• D)interest rate parity exists.
• E)both the currencies are pegged to a fixed amount of gold.

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Definitions:

AIDA Model

A marketing framework that outlines the process for achieving successful advertising and sales experiences, standing for Attention, Interest, Desire, and Action.

Traditional Authorship

The attribution of a work (literature, music, art) to an identified, individual originator or group of creators.

Inverted Pyramid

A writing structure common in news reporting, presenting the most important information first, followed by details in decreasing order of importance.

Visual Parallelism

The technique of using visually similar elements within a design or composition to create a sense of unity and balance.