Suppose That the Annual Interest Rate Is 5

question 9

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/€) .
-If the annual inflation rate is 5.5 percent in the United States and 4 percent in the U.K.,and the dollar depreciated against the pound by 3 percent,then the real exchange rate,assuming that PPP initially held,is:

• A) 0.07.
• B) 0.98.
• C) 1.05.
• D) 1.20.

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Faith-based Businesses

Enterprises that integrate religious principles with their business practices and operations.

Benefit Packages

Comprise the combination of non-wage compensations provided to employees in addition to their normal salaries or wages.

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Human Resource Management practices and principles that are designed to be compatible with Islamic laws and cultural contexts.

Employee Grievances

Complaints or concerns raised by employees regarding workplace conditions or unfair treatment.