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The Expected Return on Dollar Deposits in Terms of Dollars

Question 31

Multiple Choice

The expected return on dollar deposits in terms of dollars, RD, is


A) always the interest rate on dollar deposits, iD, for any exchange rate.
B) the interest rate on dollar deposits, iD, only when Et > . The expected return on dollar deposits in terms of dollars, R<sup>D</sup>, is A) always the interest rate on dollar deposits, i<sup>D</sup>, for any exchange rate. B) the interest rate on dollar deposits, i<sup>D</sup>, only when E<sub>t</sub> > . C) the interest rate on dollar deposits, i<sup>D</sup>, only when E<sub>t</sub> < . D) the interest rate on dollar deposits, i<sup>D</sup>, only when E<sub>t</sub> = .
C) the interest rate on dollar deposits, iD, only when Et < . The expected return on dollar deposits in terms of dollars, R<sup>D</sup>, is A) always the interest rate on dollar deposits, i<sup>D</sup>, for any exchange rate. B) the interest rate on dollar deposits, i<sup>D</sup>, only when E<sub>t</sub> > . C) the interest rate on dollar deposits, i<sup>D</sup>, only when E<sub>t</sub> < . D) the interest rate on dollar deposits, i<sup>D</sup>, only when E<sub>t</sub> = .
D) the interest rate on dollar deposits, iD, only when Et = . The expected return on dollar deposits in terms of dollars, R<sup>D</sup>, is A) always the interest rate on dollar deposits, i<sup>D</sup>, for any exchange rate. B) the interest rate on dollar deposits, i<sup>D</sup>, only when E<sub>t</sub> > . C) the interest rate on dollar deposits, i<sup>D</sup>, only when E<sub>t</sub> < . D) the interest rate on dollar deposits, i<sup>D</sup>, only when E<sub>t</sub> = .

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