An Importer Enters into a 60 Day Forward Exchange Rate

question 110

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.What is the difference in the amount the importer receives using the forward exchange rate and the spot exchange rate.

• A) 100,000
• B) 5,000
• C) 500
• D) 50
• E) 250

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Definitions:

Geographic Dispersion

The extent to which members of an organization or community are spread out over a geographic area.

Technical Expertise

Specialized knowledge or skills in a specific field or technology.

Interpersonal Skills

Abilities used to communicate and interact effectively with others, including listening, speaking, and empathy.

Face-to-face Contact

A method of communication where individuals interact directly with each other in the same physical space.