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Chako Chako
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9 years ago
What is the expected dollar rate of return on dollar deposits if today's exchange rate is $1.10 per euro, next year's expected exchange rate is $1.165 per euro, the dollar interest rate is 10%, and the euro interest rate is 5%?
A) 11%
B) -1%
C) 15%
D) 10%
E) 0%
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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#1
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9 years ago
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Chako Author
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#2
9 years ago
Correct!
wrote...
#3
9 years ago
Good luck
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