Table 11.4.Forward Exchange Rates

question 125

Multiple Choice

Table 11.4.Forward Exchange Rates

-Refer to Table 11.4.On Wednesday,the 180-day forward franc was selling at a:

• A) 0.6 percent premium per annum against the dollar
• B) 1.6 percent premium per annum against the dollar
• C) 0.6 percent discount per annum against the dollar
• D) 1.6 percent discount per annum against the dollar

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Definitions:

Kitchen Debate

A series of informal exchanges in 1959 between U.S. Vice President Richard Nixon and Soviet Premier Nikita Khrushchev, highlighting the ideological differences between the U.S. and the Soviet Union.

Geneva Accords

The agreement reached in 1954 that temporarily divided Vietnam into North and South zones and called for national elections to reunify the country.

Consumer Culture

A social and economic order that encourages the acquisition of goods and services in ever-increasing amounts, often defining success and happiness in terms of material possession.

Eisenhower Doctrine

A Cold War policy proclaimed by President Dwight D. Eisenhower in 1957, promising military or economic aid to any Middle Eastern country needing help in resisting communist aggression.