The One-Year Forward Rate Between the U

question 51

Multiple Choice

The one-year forward rate between the U.S.and Japan is ¥122.47 = $1.A one-year risk-free security in Japan is yielding 5.3 percent while it is 4.6 percent in the U.S.Assume interest rate parity exists.What is the spot rate between the U.S.and Japan?

• A)¥120.41
• B)¥121.08
• C)¥121.66
• D)¥121.94
• E)¥122.03

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Definitions:

Referent Power

A form of influence based on the ability to attract others and build loyalty through charisma, likability, or status.

Influence Tactics

Strategies or methods used by individuals to change the perception, opinion, or behavior of others to achieve a desired outcome.

Bases of Power

The sources or origins of authority and influence that leaders or entities possess, including aspects like expert power, legitimate power, and coercive power.

Influence Tactics

Methods or strategies used by individuals or groups to affect the beliefs, attitudes, or behaviors of others.