1. Assume the rate of interest on USD deposits is 5% and the rate of interest on French deposits is 3% which of the following is likely to occur? The USD will appreciate the Euro will appreciate the USD will depreciate There will be no change to the exchange rate
1. Assume the rate of interest on USD deposits is 5% and the rate of interest on French deposits is 3% which of the following is likely to occur? The USD will appreciate the Euro will appreciate the USD will depreciate There will be no change to the exchange rate
Chapter21: International Finance
Section: Chapter Questions
Problem 3QP
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1. Assume the rate of interest on USD deposits is 5% and the rate of interest on French deposits is 3% which of the following is likely to occur?
The USD will appreciate
the Euro will appreciate
the USD will depreciate
There will be no change to the exchange rate
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