If the Rate of Return Is 8 Percent in Mexico

question 199

Multiple Choice

If the rate of return is 8 percent in Mexico and 3 percent in Canada, the

• A) law of one price predicts a single international rate of return between 8 percent and 3 percent.
• B) Mexican peso is expected to depreciate against the Canadian dollar by 5 percent.
• C) Mexican peso is expected to appreciate against the Canadian dollar by 5 percent.
• D) rate of return in Mexico is expected to fall to 3 percent.
• E) rate of return in Canada is expected to rise to 8 percent.

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Definitions:

Fewer Children

A situation or trend where there is a reduction in the number of children within a family, society, or demographic group.

Life

The existence of an individual human being or animal, characterized by growth, reproduction, activity, and continual change until death.

Kinship Care

Involves the care of children by relatives or close family friends when the biological parents are unable to do so, offering an alternative to traditional foster care.

Foster

Foster refers to providing care and a temporary home for someone or something that is in need, particularly children who require safe, supportive, and nurturing environments.