Use the Following Information to Answer This Question $\bullet$ Current 1-Year Japanese Interest Rate 3

question 30

Multiple Choice

Use the following information to answer this question:
$\bullet$ Current 1-year Japanese interest rate 3.0%
$\bullet$ Current 1-year Canadian interest rate 5.0%
$\bullet$ Current spot rate C$0.01 per yen.
Estimate the 1-year forward exchange rate using interest rate parity.

• A)C$0.0102 per yen
• B)C$0.0098 per yen
• C)C$1.0194 per yen
• D)C$0.9810 per yen

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Definitions:

General Ledger

A comprehensive set of accounts that provides a complete record of all the financial transactions of a business.

Sales Tax

A consumption tax imposed by the government on sales of goods and services, collected by retailers at the point of sale and passed on to the government.

Cash Register

An electronic or mechanical device for registering and calculating transactions at a point of sale, often equipped with a cash drawer.

Cashier's Accuracy

The measure of a cashier's performance in handling transactions correctly, minimizing discrepancies between the recorded amount and the actual amount of cash received.