The One-Year Forward Exchange Rate for the British Pound Is

question 13

Multiple Choice

The one-year forward exchange rate for the British Pound is $1.90/Pound.If the one-year U.S.interest rate is 4% and the one-year British interest rate is 6%,compute the implied spot exchange rate in $/Pound.

• A)1.89
• B)1.90
• C)1.92
• D)1.94

Understand the goals of an internal control system.

Comprehend the significance of cycle time in manufacturing and its implications on the production process.

Recognize signs of employee fraud within an organization.

Identify policies and procedures used for monitoring and controlling business activities.

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Definitions:

Wage Rate

The amount of compensation an employee receives in exchange for performing a specific job, typically expressed per hour or year.

Endowment

The value that a property generates for its owner; in economics, it often refers to the initial allocation of goods and resources available to individuals.

Consumption

The consumption of products and services by families or personal users.

Price Change

A fluctuation in the market price of goods, services, or assets, which can be influenced by various factors including supply and demand, market sentiment, and news.