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

question 13

Multiple Choice

What is the end-of-year profit or loss to the bank if in one year the exchange rate falls to US $0.765 per Canadian dollar? (Assume that there is no change in interest rates.)

• A)Loss of US $75,000.
• B)Profit of C $274,000.
• C)Loss of US $7,000.
• D)Profit of C $9,000.
• E)Loss of US $5,000.

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Definitions:

Timely Notice

The requirement to inform or alert parties involved in a legal or formal process within a set time frame to ensure fairness.

Dishonor

The refusal or inability to pay a financial obligation when it comes due.

Secondarily Liable

Refers to a party who is indirectly responsible for fulfilling a debt or obligation if the primary party fails to do so.

Secondary Signature Liability

The legal responsibility of a party who signs a document on behalf of another party, potentially being held liable under certain conditions.