If USPrices Are Expected to Rise by 3

question 11

Multiple Choice

If U.S.prices are expected to rise by 3.5 percent over the coming year and prices in Great Britain are expected to rise by 5.25 percent during the same time, what is the expected spot rate in one year given that the current spot exchange rate is $1.497?

• A)$1.522
• B)$1.470
• C)$1.472
• D)$1.499

---

Definitions:

Retail Distribution Center

A dedicated warehouse facility that centralizes the reception, processing, and distribution of goods to various retail outlets.

Internet Channel

The online medium through which businesses sell products or services to consumers directly.

SKU Identification

A unique code that identifies a specific stock keeping unit, enabling easier tracking and inventory management.

Promotional Materials

Items designed to advertise or market a product, service, or event, ranging from brochures and flyers to online ads and social media posts.