Assume the Current U

question 44

Multiple Choice

Assume the current U.S. dollar-British spot rate is £0.6993/$. If the current nominal one-year interest rate in the U.S. is 5% and the comparable rate in Britain is 6%, what is the approximate forward exchange rate for 360 days?

• A) £1.42/$
• B) £1.43/$
• C) £0.6993/$
• D) £0.7060/$

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Definitions:

Approximately

An adverb describing an estimate or a value that is close to but not exactly the specified amount.

Marital Breakdown

Refers to the process by which a marriage deteriorates to the point where the couple decides to separate or divorce.

Canada's Divorce Act

The legal legislation governing divorce in Canada, outlining the grounds and procedures for legally ending a marriage.

Physical Cruelty

Actions that cause physical harm or suffering to others, including animals, often indicative of abuse or violence.