Question
Assume the Thai Bhat interest rate is 6% and the U.S. interest rate is 3%. If Thai bhat areborrowed by a U.S. firm, they would
Assume the Thai Bhat interest rate is 6% and the U.S. interest rate is 3%. If Thai bhat areborrowed by a U.S. firm, they would have to _____ against the dollar by _____ in order tohave the same effective financing rate as borrowing dollars.
a.appreciate;about 2.83 %
b.depreciate;about 3.00%
c.appreciate;about 3.00%
d.depreciate;about 2.83 %
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
