A Currency Dealer Has Good Credit and Can Borrow Either

question 5

Multiple Choice

A currency dealer has good credit and can borrow either $1,000,000 or €800,000 for one year. The one-year interest rate in the U.S. is i_$ = 2% and in the euro zone the one-year interest rate is i_€ = 6%. The one-year forward exchange rate is $1.20 = €1.00; what must the spot rate be to eliminate arbitrage opportunities?

• A)$1.2471 = €1.00
• B)$1.20 = €1.00
• C)$1.1547 = €1.00
• D)none of the above

Understand the concept and importance of reactive changes in an organization.

Recognize examples of successful change management initiatives.

Identify different forms of resistance to change, including passive and active resistance.

Grasp the concepts of tuning, kaizen, and preventive maintenance as forms of continuous improvement.

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Definitions:

Panic Disorder

A psychiatric disorder characterized by recurrent unexpected panic attacks and persistent concern about having more attacks.

Somatoform Disorder

A mental disorder characterized by physical symptoms that have no identifiable physical cause, often thought to be linked to psychological factors.

PTSD

Post-Traumatic Stress Disorder, a psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event such as a natural disaster, a serious accident, a terrorist act, war/combat, or rape or who have been threatened with death, sexual violence, or serious injury.

Hypochondria

An excessive preoccupation with the fear of having a serious illness, despite medical reassurance to the contrary.