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Assume That Interest Rates in the United States and Britain

Question 42

Multiple Choice

Assume that interest rates in the United States and Britain are the same.If a U.S.resident anticipates that the exchange value of the dollar is going to appreciate against the pound, she should


A) borrow needed funds from British banks rather than U.S. banks.
B) borrow needed funds from U.S. banks rather than British banks.
C) convert U.S. dollars into British pounds.
D) use currencies other than dollars and pounds.

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