Suppose That the Annual Interest Rate Is 5

question 10

Multiple Choice

Suppose that the annual interest rate is 5.0 percent in the United States and 3.5 percent in Germany, and that the spot exchange rate is $1.12/€ and the forward exchange rate, with one-year maturity, is $1.16/€. Assume that an arbitrager can borrow up to $1,000,000 or €892,857 (which is the equivalent of $1,000,000 at the spot exchange rate of $1.12/€) .
-Covered interest arbitrage would not be possible if the forward rate would be:

• A) $1.1093/€.
• B) $1.1248/€.
• C) $1.1362/€.
• D) $1.1611/€.

Recognize and describe different research designs used in developmental psychology and their purposes.

Explain the relationship between genetics (nature) and environment (nurture) in shaping human development.

Identify and describe critical periods in human development and their significance.

Understand the concept of phenotypes and genotypes and the role of alleles in genetic variation.

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Definitions:

Motivation

A psychological force that drives individuals to achieve goals and fulfill needs.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.

Alderfer

Refers to Clayton Alderfer's ERG theory, which categorizes human needs into existence, relatedness, and growth categories.

Process Theories

Are motivation theories that focus on how people become motivated and what they are motivated to do rather than on what motivates them.