Question: Exercise 8 - 3 2 : 8 - 3 2 . In a certain non - U . S . country in 2 0 1
Exercise : In a certain non US country in the local currency the 'Real' was pegged to the US dollar at the rate of $ US Real. The Real was then devalued over the next five years so that $ US Real. A bank in the northeastern United States bought assets in this country valued at million Real in Now that it is year what is the worth of this bank's investment in US dollars? Should the bank sell out of its investment in this country or should it buy more assets?
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