Multiple Choice
Assume an FI sells A$100 million for US dollars on the spot currency markets at an exchange rate of A$1.10 to US $1.00 and invests the US dollar assets at an interest rate of 12 per cent for one year. What is the Australian dollar proceeds from the US dollar investment (round to two decimals) ?
A) A$100.00 million
B) A$112.00 million
C) A$90.91 million
D) A$101.82 million
Correct Answer:
Verified
Correct Answer:
Verified
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