If US Prices Are Expected to Rise by 3

question 33

Multiple Choice

If U.S. prices are expected to rise by 3.5% over the coming year and prices in Great Britain are expected to rise by 5.25% during the same time, what is the expected spot rate in one year given that the current spot exchange rate is $1.497?

• A) $1.522
• B) $1.470
• C) $1.472
• D) $1.499

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Definitions:

Job Specifications

A detailed description of the qualifications, skills, experience, and attributes required for a particular job role.

Job Evaluation Systems

Methodologies used by organizations to assess the relative worth of jobs within the company, to ensure fair compensation.

Job Analysis

A systematic examination of a job to identify its component tasks, responsibilities, and the necessary skills, knowledge, and abilities for performance.

Red-Circling

A practice where an employee's pay is frozen or maintained at a high rate, despite the position's salary range being reduced or the employee moving to a lower-paid position.