A Hardship Allowance Is Paid

question 10

Multiple Choice

A hardship allowance is paid:

• A) when the expatriate is being sent to a location where such basic amenities are grossly deficient by the standards of the expatriate's home country.
• B) to ensure that an expatriate's children receive adequate schooling (by home-country standards).
• C) to ensure that the expatriate will enjoy the same standard of living in the foreign posting as at home.
• D) to ensure that the expatriate can afford the same quality of housing in the foreign country as at home.

---

Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

M.B.A. Programs

Master of Business Administration programs, offering advanced education in business management and operations.

Nominal Interest Rate

The stated interest rate of a loan or investment without adjusting for inflation.

Real Rate

The interest rate that has been adjusted for inflation, reflecting the true cost of borrowing or the true yield on an investment.