Assume the Spot Exchange Rate for the Swiss Franc Is

question 35

Multiple Choice

Assume the spot exchange rate for the Swiss franc is CHF0.90 = USD1 and the 1-year forward rate is CHF0.871 = USD1.If the 1-year interest rate in the U.S.is 5%,what is the 1-year interest rate in Switzerland?

• A) 2.00%
• B) 1.62%
• C) 1.50%
• D) 1.33%

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Definitions:

Downward Communication Systems

This refers to the flow of information from higher levels of management or leadership down to lower-level employees within an organization, facilitating instructions, policies, and feedback.

Employee Involvement

A management practice whereby employees are given the opportunity to participate in decision-making processes within an organization, thereby contributing to improvements in productivity, morale, and ownership.

Employee Satisfaction

The level of contentment and positive feelings employees have towards their job and workplace environment.

Upward Communication

Communication that begins in the organization and proceeds up the hierarchy to inform or influence others.