Instruction 17.1: Use the Information to Answer the Following Question(s)

question 24

Multiple Choice

Instruction 17.1:
Use the information to answer the following question(s) .
In September 2002 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.30/euro. At the end of one year the spot rate is $1.35/euro.
-Refer to Instruction 17.1.How many euros will the U.S.investor acquire with his initial $500,000 investment?

• A)euro 650,000
• B)euro 370,370
• C)euro 500,000
• D)euro 384,615

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Definitions:

Chemical Properties

Characteristics of a substance that dictate how it reacts with other substances to form new products.

Electrical Resistance

The measure of the difficulty electrons face in flowing through a conductor, resulting in heat generation and energy dissipation.

Sectional Area

Sectional area refers to the area of a particular cross-section of a material or structural element, significant in physics and engineering for calculating stress, resistance, and other material properties.

Electrical Current Flow

The movement of electrically charged particles through a conductor or space, typically measured in amperes (A).