Assume Perfect Foresight

question 22

Multiple Choice

Assume perfect foresight.The current spot rate is C$2.037 per British pound.The 3-month forward rate is C$2.0383.The spot rate in three months will be C$2.04 per pound.What position must an investor assume in order to make a profit of $17.00?

• A) Pound 13,077 short position
• B) Pound 10,000 long position
• C) Pound 10,000 short position
• D) Pound 13,077 long position

Appreciate the importance of measurement accuracy in the control process.

Explore the benefits of benchmarking and best practices in control and performance improvement.

Comprehend the different types of managerial control systems (feedforward, concurrent, feedback, and internal controls) and their applications.

Understand the concept and applications of management by exception.

---

Definitions:

Corporate Tax Rate

The percentage of a company's taxable income that it pays to federal, state, or local tax authorities.

Demand Shock

An event that affects the demand for goods and services in the economy.

Money Supply

The sum of all financial assets present in an economy at a given time, encompassing cash, coins, and the amounts in checking and savings accounts.

Government Spending

Expenditures made by public authorities on goods, services, and public works, which can influence economic activity.