If the Rate of Return Is 1 Percent in Mexico

question 129

Multiple Choice

If the rate of return is 1 percent in Mexico and 3 percent in Canada, the

• A) law of one price predicts a single international rate of return between 1 percent and 3 percent.
• B) Mexican peso is expected to depreciate against the Canadian dollar by 2 percent.
• C) Mexican peso is expected to appreciate against the Canadian dollar by 2 percent.
• D) rate of return in Mexico is expected to rise to 3 percent.
• E) rate of return in Canada is expected to fall to 1 percent.

---

Definitions:

Film Noir

A cinematic term used to describe stylish Hollywood crime dramas, particularly those that emphasize cynical attitudes and sexual motivations.

Antagonist

The major character in a film whose values or behavior is in conflict with that of the protagonist.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often in the context of bankruptcy.

Antitrust Lawsuits

Legal actions initiated to challenge practices or agreements that are deemed to restrict free trade and competition in the marketplace.