In the foreign exchange market, if the interest rate on foreign deposi – McqOptions

MCQOPTIONS

1.	In the foreign exchange market, if the interest rate on foreign deposits increases, holding everything else constant,
A.	The expected return schedule for foreign deposits shifts to the right.
B.	The dollar depreciates.
C.	The foreign currency appreciates.
D.	All of the above.
Answer» E.

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