An Importer Enters into a 60 Day Forward Exchange Rate

question 96

Multiple Choice

An importer enters into a 60 day forward exchange rate for converting dollars into yuan.The spot exchange rate is 5.28 yuan for 1 dollar.The forward exchange rate is 5.27 yuan for 1 dollar.How many yuan would the importer get for 50,000 dollars?

• A) 264,000
• B) 364,000
• C) 364,500
• D) 353,500
• E) 263,500

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Definitions:

Classical Conditioning

A method of pairing in learning where two stimuli are habitually associated; over time, the response originally from the second stimulus comes to be from the first stimulus alone.

Reinforcement

A principle in behavior theory in which a behavior is strengthened or made more likely to occur in the future by consequences that follow it.

Secondary Reinforcer

A stimulus that gains its reinforcing capability through its association with a primary reinforcer, such as money or praise.

Disequilibrium Principle

A concept in learning and education suggesting that learning occurs when an individual encounters cognitive conflict or disequilibrium, prompting adaptation and new learning to restore balance.