If Samantha Obtains 70% of Her Sales from Client a and 30

question 18

Multiple Choice

If Samantha obtains 70% of her sales from client A and 30% from client B, the matching law predicts that she will choose to spend _____ of her time with client A.

• A) more than 70%
• B) 70%
• C) less than 70%
• D) 30%

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Definitions:

Interest Rate Differential

The difference in interest rates between two distinct economic or financial entities, typically affecting currency value or investment decisions.

Forward Exchange Rates

Exchange rates at which two parties agree to exchange currencies at a future date.

Interest Rate Parity

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