If the Current Spot Rate Between the U

question 106

Multiple Choice

If the current spot rate between the U.S. dollar and the Netherland Antilles guilder was $1 = 1.54 guilder, and if the inflation rate in the United States was 2 percent and in the Netherland Antilles it was 8 percent, then what would be the expected spot rate in one year?

• A) $0.6104
• B) $0.6494
• C) $1.4476
• D) $0.6133

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Definitions:

Environment Performance Index (EPI)

A method of quantifying and numerically marking a country's environmental performance in different policy categories.

GDP

Gross Domestic Product represents the aggregate value, in monetary or market terms, of every final good and service created inside the confines of a country during a designated period.

Individual Transferable Quota (ITQ)

A policy tool used in fisheries management, allowing fishing rights to be allocated to individuals or entities, which can then be traded.

Market Price

The market price is the current price at which a good or service can be bought or sold in a marketplace.