If the Interest Rate on Dollar Deposits Is 10 Percent,and

Multiple Choice

If the interest rate on dollar deposits is 10 percent,and the dollar is expected to appreciate by 7 percent over the coming year,the expected return on dollar deposits in terms of the foreign currency is

A) 3 percent.
B) 10 percent.
C) 13.5 percent.
D) 17 percent.
E) 24 percent.