Assume the Current U

question 44

Multiple Choice

Assume the current U.S. dollar-British spot rate is £0.6993/$. If the current nominal one-year interest rate in the U.S. is 5% and the comparable rate in Britain is 6%, what is the approximate forward exchange rate for 360 days?

• A) £1.42/$
• B) £1.43/$
• C) £0.6993/$
• D) £0.7060/$

---

Definitions:

Bourgeois Class

A social class characterized by their ownership of capital and their related culture, habits, and lifestyle, typically contrasted with the working class.

Capitalist Society

A system of economy in which the ownership of resources and investments lies in the hands of private entities or businesses, and where market pricing, the manufacturing, and allocation of commodities are largely governed by the dynamics of competition within an open market.

Gross Sales

The total revenue generated from the sale of goods or services before any deductions are made for returns, allowances, or discounts.

Wal-Mart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, known for its large-scale operations and economic impact.