If you deposit $5,000 in a savings account that offers a 3% annual interest rate compounded annually, how much (approximately) will you have after 2 years?
Moneyland uses Money and Cashtan uses Cash, as their currencies. Currently, spot exchange rate is 1.25 Money = 1 Cash. The three-month forward exchange rate is 1.30 Money = 1 Cash. The currency market is assumed perfect, and the International Fisher Effect holds. Which of the following statements is
