If the Interest Rate in Japan Is Less Than the Interest

question 102

Multiple Choice

If the interest rate in Japan is less than the interest rate in Canada, rate of return parity suggests that

• A) the inflation rate is higher in Japan than in Canada.
• B) Canadian financial assets are poor investments.
• C) the yen is expected to depreciate against the Canadian dollar.
• D) the yen is expected to appreciate against the Canadian dollar.
• E) Japanese financial assets are poor investments.

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Definitions:

Anxious Temperament

A predisposition to respond to situations with fear or anxiety, often resulting from genetic or environmental factors.

Anxiety Disorders

A group of mental health disorders characterized by significant feelings of anxiety and fear, impacting daily living.

Behaviourally Inhibited

Describes individuals who demonstrate a consistent pattern of shyness, fearfulness, and withdrawal from unfamiliar people, situations, or environments.

Temperamentally Bold

Refers to individuals who show a natural tendency to be fearless, adventurous, and confident in unfamiliar situations.