An American company today invests some of its spare cash in a Hungarian money market account that will earn 8 percent for two months. Which of the following, if it happens during the next two months, would imply that the company will earn less than 8 percent on its investment?
A) The Hungarian forint rises in value against the dollar.
B) Interest rates in the United States move down.
C) Short-term interest rates in Hungarian money markets shoot up.
D) The dollar appreciates against the Hungarian forint.
Correct Answer:
Verified
Q21: The _ is the rate at which
Q22: Which of the following involves borrowing in
Q23: When a tourist goes to a bank
Q24: Which term refers to the rate at
Q25: The short-term movement of funds from one
Q27: Currency _ typically involves the short-term movement
Q28: Transaction exposure includes obligations for the purchase
Q29: International businesses use foreign exchange markets for
Q30: The _ helps consumers compare the relative
Q31: _ arises from volatile changes in exchange
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents