Solved

According to the Interest Parity Condition,if the U

Question 86

Multiple Choice

According to the interest parity condition,if the U.S. interest rate is 2 percent and the Japanese interest rate is 4%,and the current exchange rate is 100 yens per dollar. Then the market expects the future exchange rate to be ________ yens per dollar.


A) 102
B) 1.02
C) 98
D) 0.98

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q81: When a country's goods and services are

Q82: If one U.S. dollar is traded on

Q83: The theory of portfolio choice suggests that

Q84: When the effects of the global financial

Q85: If the U.S. dollar appreciates from 1.25

Q87: According to the Purchasing Power Parity,if one

Q88: According to PPP,the real exchange rate between

Q89: An increase in the domestic interest rate

Q90: When Americans or foreigners expect the return

Q91: The theory of PPP suggests that if