Assignment:
Q1. Comment on the following statement: ‘‘One should borrow in those currencies expected to depreciate and invest in those expected to appreciate.’’
Q2. What are the three basic types of bank loans? Describe their differences.
Q3. How does each of the following affect the relationship of stated and effective interest rates?
a. The lending bank requires the borrower to repay principal and interest at the end of the borrowing period only.
b. Interest is deducted from the amount borrowed before the borrower receives the proceeds.
c. What is the likely ranking of the above terms from least to most expensive?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.