Question:
Suppose the US interest rate is 3% per annum. The ₹-$ exchange rate in spot market is 80 and in 3-month forward market is 81. What is the per annum return on US bond in rupee terms?
Suppose the US interest rate is 3% per annum. The ₹-$ exchange rate in spot market is 80 and in 3-month forward market is 81. What is the per annum return on US bond in rupee terms?
Updated On: Jun 11, 2024
- 4.25%
- 8%
- 1.75%
- -2%
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
The correct option is(B): 8%
Was this answer helpful?
1
5
Top Questions on Money Market
- Consider a closed economy IS-LM model. The goods and the money market equations are respectively given as follows:
$ 𝑌 = 90 + 0.8𝑌_𝑑 − 100𝑖 + 𝐺$
$𝑀_𝑠 = 750 + 0.2𝑌 − 260𝑖$
where, 𝑌 = national income; $𝑌_𝑑$ = disposable income; 𝑇 = total tax given by 𝑇 = 5 + 0.2𝑌; 𝑖 = interest rate; 𝐺 = government expenditure = 300; $ 𝑀_𝑠$ = constant money supply = 950.
The value of 𝑇 at equilibrium 𝑌 is _______. (rounded off to the nearest integer).- IIT JAM EN - 2024
- Macroeconomics
- Money Market
- Exchange rate determined by the market forces of demand and supply is known as:
- CUET (UG) - 2023
- Economics
- Money Market
- "Cooperative marketing have received a set back during the recent past". Choose the option that is not true for the above statement.
- CUET (UG) - 2023
- Economics
- Money Market
- The first and foremost role of money is that it acts as a :
- CUET (UG) - 2023
- Economics
- Money Market
- Regulation of markets aim to create orderly and transparent marketing conditions. Name the group that has been benefited from this :
- CUET (UG) - 2023
- Economics
- Money Market
View More Questions
Questions Asked in CUET PG exam
- Find out the degree of the differential equation \(\frac {d^2t}{ds^2}+(\frac {dt}{ds})^2+2t=0\)
- CUET (PG) - 2023
- Differential Equations
- The surface area of the sphere x2 + y2 + z2 = 9 lying inside the cylinder x2 + y2 = 3y is
- CUET (PG) - 2023
- Surface Area of Cube, Cuboid and Cylinder
- The Ombudsman in a newspaper organisation represents the point of view of the ___.
- CUET (PG) - 2023
- Journalism
- The orthogonal trajectories of the family of curves y = \(ax^3\) is
- The minimum distance of the point (3, 4, 12) from the sphere x2 + y2 + z2 = 1 is
- CUET (PG) - 2023
- Coordinate Geometry
View More Questions