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:

Safeguards

Measures or controls put in place to protect against unauthorized access, damage, or theft.

Assets

Resources owned by a company that have economic value and can be used to meet liabilities.

Internal Auditors

Professionals who conduct audits within an organization to review and evaluate the adequacy of internal controls and compliance with policies and regulations.

Evaluate

To Evaluate means to systematically assess something by considering its merits, qualities, or values, usually in a detailed and analytical manner.