The Present Exchange Rate Is C$ = U

question 1

Multiple Choice

The present exchange rate is C$ = U.S. $0.78. The 1-year future rate is C$ = U.S. $0.75. The yield on a 1-year U.S. bill is 5%. A yield of __________ on a 1-year Canadian bill will make investor indifferent between investing in the U.S. bill and the Canadian bill.

• A) 9.2%
• B) 8.3%
• C) 6.4%
• D) 11.3%
• E) None of the options

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Definitions:

Threat Response

The reaction or actions taken by an individual or group when faced with a perceived danger or threatening situation.

Audience

A group of individuals who gather to watch, listen to, or read a performance, presentation, or work, engaging as spectators or listeners.

Unitary Task

A task that is designed to be accomplished by a group working together as a single cohesive unit.

Conjunctive Task

A group task where the performance of the group is determined by the performance of the least capable member.