The French Franc Is Currently Worth $0

question 88

Multiple Choice

The French franc is currently worth $0.24 and it's selling in the one-year forward market at a 10% premium relative to the Canadian Dollar.Approximately what rate would you expect to pay for a one-year loan in France if the rate would be 10% in Canada?

• A)10.00%
• B)11.62%
• C)14.55%
• D)20.00% 1.1 x 4.167 = 4.583

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Definitions:

Traditional Focus

Emphasis on values, practices, and methods that have been historically prevalent and passed down through generations.

Non-Western Peoples

Populations or cultural groups that derive from nations or regions outside the Western world, emphasizing diverse traditions and perspectives.

Absolute Dating Techniques

Methods used in archeology and geology to determine the exact age of an artifact, fossil, or site, such as carbon dating.

Coltan

A mineral comprising columbite and tantalite, used primarily in the production of tantalum capacitors for electronic devices such as mobile phones.