Consider that you currently have $400,000 pesos, which at current parity is equivalent to $20,000 dollars....

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Consider that you currently have $400,000 pesos, which at current parity is equivalent to $20,000 dollars. If banks in Mexico pay 8% annual interest on deposits to a year and banks in the USA pay 1.5% per year on similar deposits What is the daily slippage from which it is convenient to deposit our money in the USA? Consider that you currently have $400,000 pesos, which at current parity is equivalent to $20,000 dollars. If banks in Mexico pay 8% annual interest on deposits to a year and banks in the USA pay 1.5% per year on similar deposits What is the daily slippage from which it is convenient to deposit our money in the USA?

Answer rating: 100% (QA)

To determine the daily slippage from which it is convenient to deposit money in the USA we need to c... View the full answer