An investment firm in the US can invest $24,000 either in the US or in South Africa. In the US the interest rate is 5.5 %, while it is 23.2 % in South Africa. If the future exchange rate is forecast as $1 US buys 25.95 Rand, and the firm claims the two future values are equal, then the current exchange rate E, must be $1 US buys Rand. O 15.54 O 18.84 O 20.72 O 22.22

An investment firm in the US can invest $24,000 either in the US or in South Africa. In the US the interest rate is 5.5 %, while it is 23.2 % in South Africa. If the future exchange rate is forecast as $1 US buys 25.95 Rand, and the firm claims the two future values are equal, then the current exchange rate E, must be $1 US buys Rand. O 15.54 O 18.84 O 20.72 O 22.22

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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