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| Over the past year, incomes in Russia have risen across the board. Today’s spot rate with respect to the U.S. dollar is $1 = 30 rubles. Which one of the following statements is consistent with these facts? A. One year ago, $1 could be exchanged for 29 Russian rubles on the spot market. B. The dollar was selling at a forward premium 1year ago. C. Interest rates in the U.S. are higher than those in Russia. D. Interest rates in the U.S. are lower than those in Russia. |