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Author Question: The dollar return on a foreign investment is less than the interest rate on the foreign asset, if ... (Read 109 times)

shofmannx20

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on: Jun 30, 2018
The dollar return on a foreign investment is less than the interest rate on the foreign asset, if the foreign currency depreciates against the U.S. dollar between the purchase date and the maturity date.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Under a system of flexible exchange rates, an increase in the foreign demand for the U.S. dollar in the foreign exchange market will cause the:
 a. dollar to appreciate.
 b. dollar to depreciate.
 c. U.S. trade deficit to decrease.
  d. U.S. inflation rate to increase.


gstein359

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Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

a


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shofmannx20

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Reply #2 on: Jun 30, 2018
Thank you :)


gstein359

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Reply #3 on: Jun 30, 2018
Happy to help you


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