A Bank Quotes a Spot Rate That Is Verifiably Incorrect

question 217

Multiple Choice

A bank quotes a spot rate that is verifiably incorrect and deviates substantially from the prevailing market rate.

• A) you should hit the price and hold the bank to the quoted incorrect rate, as the quoted party is entitled to hold the quoting party to an erroneous rate
• B) you should ask the dealer to check his price, as it is highly unethical for one party to hold another to an erroneously agreed rate
• C) you should point out the mistake and split the difference
• D) you should keep on dealing with this bank until the mistake is rectified

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Definitions:

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work, which can significantly impact an organization's success.

Timeliness of Delivery

The measure of how quickly and within the scheduled timeframe goods or services are delivered to the customer.

Incremental Costs

The additional costs that are incurred if the level of business activity or output changes.

Out-of-Pocket Costs

Out-of-pocket costs are expenses that individuals directly pay from their funds, not covered by third-party payers like insurance.