Assume That the U

question 122

Multiple Choice

Assume that the U.S. interest rate is 5%, the European interest rate is 2%, and the future expected exchange rate in one year is $1.224. If the spot rate is $1.24, then the expected dollar return on euro deposits is:

• A) 4%.
• B) 7.1%.
• C) 0.71%.
• D) 0.129%.

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Definitions:

Invasion of Privacy

An intrusion into the private life of an individual without just cause, which can lead to emotional distress or harm.

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A lie detector test used to measure and record physiological indicators such as blood pressure and heart rate to determine the truthfulness of a person's statements.

Age Discrimination in Employment Act

A federal law that prohibits employment discrimination against individuals 40 years of age or older.

State Government

The government of an individual state within a federal structure, responsible for local policies and laws.