Talk About "Shell-Shock"! Two Nights Ago, Adam Was Living in a Tent

question 154

Multiple Choice

Talk about "shell-shock"! Two nights ago, Adam was living in a tent with thirty other Marines in the hills of Afghanistan. Today he is waking up to the smell of fresh linen, in a king-sized bed, in his very own room in DeKalb, Illinois. Three days ago, his first priority was the welfare of his battle buddies. This morning, his first priority (according to his family) is not wasting anytime and getting back into College. Although he has always believed in the importance of school and the respect that comes with achieving a degree, right now he is not quite in that frame of mind. His first desire is to spend time renewing old friendships, including organizing a couple of float trips and ball game nights with the group of friends he left behind. According to Maslow's hierarchy of needs,

• A)Adam is satisfied with self-actualization needs, but he needs to satisfy his social needs.
• B)Adam is satisfied with his physiological and safety needs, but he needs to satisfy his social needs.
• C) Adam is satisfied with his self-esteem needs, but he is still concerned with a need to keep himself safe.
• D)Adam is satisfied with his physiological and safety needs, but has a strong desire to satisfy his self-esteem needs.

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Definitions:

Interest Rate Parity

A theory stating that the difference in interest rates between two countries is equal to the difference between the forward exchange rate and the spot exchange rate.

Spot Rate

The current market price of a foreign currency, commodity, or security for immediate delivery or settlement.

Home Currency Approach

A method in international finance where transactions are converted and evaluated in the currency of one's own country.