Author Question: Assume that an American investor decides to buy one-year Swiss bonds that are denominated in Swiss ... (Read 93 times)

2125004343

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Assume that an American investor decides to buy one-year Swiss bonds that are denominated in Swiss francs and pay 2 percent annual interest. For this purpose, 10,000 is exchanged into Swiss francs at an exchange rate of 1 = 2Fr to buy the bonds. How many dollars will the investor have after one year if the exchange rate is 1 = 1.5Fr?
 a. 10,000
  b. 10,200
  c. 15,300
  d. 13,600
  e. 7,650

Question 2

A decrease in supply will cause a surplus at the original market price.
 a. True
  b. False
  Indicate whether the statement is true or false



yeungji

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Answer to Question 1

d

Answer to Question 2

False



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