Assume the Current U

question 44

Multiple Choice

Assume the current U.S. dollar-British spot rate is £0.6993/$. If the current nominal one-year interest rate in the U.S. is 5% and the comparable rate in Britain is 6%, what is the approximate forward exchange rate for 360 days?

• A) £1.42/$
• B) £1.43/$
• C) £0.6993/$
• D) £0.7060/$

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Definitions:

Declarative Memories

Memories that can be consciously recalled, such as facts and events.

Factual Memory

The capacity to recall information about facts and events from the past, often associated with explicit or declarative memory.

Semantic Networks

A concept in cognitive science that describes how knowledge is organized and interconnected in the brain based on meanings and semantically related ideas.

Conditioned Responses

Conditioned responses are learned reactions to a particular stimulus that result from conditioning, as seen in classical conditioning experiments.