What Is the Expected Dollar Rate of Return on Euro

question 26

Multiple Choice

What is the expected dollar rate of return on euro deposits if today's exchange rate is $1.10 per euro,next year's expected exchange rate is $1.166 per euro,the dollar interest rate is 10%,and the euro interest rate is 5%?

• A)10%
• B)11%
• C)-1%
• D)0%
• E)15%

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Definitions:

Union Density

The ratio of workers who are union members to the total number of workers in a given region or sector, indicative of the strength and reach of labor unions.

Labor Law

A body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations.

Efficiency

In an economic context, the optimal allocation and use of resources to achieve the best possible output or outcome with minimal waste.

Equity

The value of an ownership interest in property, including shareholders' equity in a company, which represents the amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debt was paid off.