Which of the Following Is Applied When an American Tourist

question 85

Multiple Choice

Which of the following is applied when an American tourist exchanges dollars for the immediate receipt of Japanese yen at a Tokyo bank?

• A) the forward rate
• B) the spot rate
• C) the discount rate
• D) the prime rate

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Definitions:

Voluntary

A term indicating that an action or process is undertaken by someone's own choice or consent, without external compulsion.

Mandatory

Something that is required or obligatory by law or rules.

Chilling Effect

A chilling effect occurs when the exercise of rights or freedoms is discouraged by the threat of legal sanction or other negative consequences, leading to self-censorship or avoidance of certain actions.

Arbitration

A method of dispute resolution where an impartial third party, the arbitrator, makes a binding decision to resolve a dispute outside of court.