Assume an FI Sells A$100 Million for US Dollars on the Spot

question 9

Multiple Choice

Assume an FI sells A$100 million for US dollars on the spot currency markets at an exchange rate of A$1.20 to US$1.00 and invests the US dollar assets at an interest rate of 12 per cent for one year. What is the value of the US dollar assets at the end of the year (round to two decimals) ?

• A) US$134 400.00 million
• B) US$22 400.00 million
• C) US$93 333.33 million
• D) US$560 000.00 million

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Definitions:

World-class Endurance Athletes

Athletes who perform at the highest level in activities that require sustained physical effort, such as long-distance running, cycling, and swimming.

Light Exercise

Physical activity that requires minimal effort, such as walking or leisurely biking, and is often recommended for health maintenance.

Energy Used

The total amount of energy expended by the body through processes like metabolism, physical activity, and maintaining bodily functions.

Aerobic Center Longitudinal Study

A research project that examines the health benefits of regular aerobic exercise.