Suppose Yates Inc

question 39

Multiple Choice

Suppose Yates Inc., a U.S.exporter, sold a consignment of antique American muscle-cars to a Japanese customer at a price of 143.5 million yen, when the exchange rate was 140 yen per dollar.In order to close the sale, Yates agreed to make the bill payable in yen, thus agreeing to take some exchange rate risk for the transaction.The terms were net 6 months.If the yen fell against the dollar such that one dollar would buy 154.4 yen when the invoice was paid, what dollar amount would Yates actually receive after it exchanged yen for U.S.dollars?

• A) $1,075,958
• B) $1,025,000
• C) $1,000,000
• D) $975,610
• E) $929,404

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Definitions:

Association

The linkage of two events, usually as the result of a specific experience.

Positive Explanatory Styles

A cognitive approach characterized by attributing positive events to stable, global, and internal factors, and negative events to unstable, specific, and external factors.

Hopelessness

The belief that negative events are inevitable and a sense of self-deficiency or unworthiness.

Expectations

Mental representations of future events, which can influence perception, cognition, and behavior in anticipation of those events.