Question
Which of the following statements is incorrect? Group of answer choices A Eurocurrency is a time deposit that is in a bank located in a
Which of the following statements is incorrect?
Group of answer choices
A Eurocurrency is a time deposit that is in a bank located in a country different from the country that issued the currency.
The spot rate is the exchange rate that you would pay for immediate delivery of a currency.
Higher country risk should be incorporated into the international capital budgeting analysis by adjusting the firm's discount rate downward for the additional risk.
Given that the spot rate is $1.5136/ and the 90-day forward quote is $1.4974/, we can say that the U.S. dollar is expected to appreciate against the Euro in the future.
All the answers are correct except one.
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