Author Question: The dollar return on a foreign investment is less than the interest rate on the foreign asset, if ... (Read 117 times)

shofmannx20

  • Hero Member
  • *****
  • Posts: 562
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

  • Sr. Member
  • ****
  • Posts: 293
Answer to Question 1

True

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

For a complete list of videos, visit our video library