What Is the End-Of-Year Profit or Loss to the Bank

question 11

Multiple Choice

What is the end-of-year profit or loss to the bank if in one year Canadian bond rates increase to 7.538 percent? (Assume no change in either current U.S. interest rates or current exchange rates, US $0.78493/C $1.)

• A)Loss of US $5,000.
• B)Profit of US $15,000.
• C)Loss of C $119,000.
• D)Profit of C $50,000.
• E)Loss of C $50,000.

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Definitions:

Semicircular Canals

Three fluid-filled tubes in the inner ear that help maintain balance by detecting changes in head rotation and motion.

Liquid

A state of matter with a definite volume but no fixed shape, that flows and adapts to the shape of its container.

Rods And Cones

Specialized light-sensitive cells in the retina of the eye, where rods detect light intensity and cones are responsible for color vision.

Retina

Photoreceptor-containing layer of tissue in an eye.