22-114 If at the End of the Year,the Exchange Rate

question 76

Multiple Choice

22-114 If at the end of the year,the exchange rate is $1.65/£,what is the spread earned on the loan by the FI in dollars after adjusting fully for exchange rates?

• A)-$3,750,000.
• B)-$1,250,000.
• C)+$1,250,000.
• D)+$3,750,000.
• E)+$5,000,000.

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Definitions:

Legal Business Form

The legal structure of an organization defined during registration, such as sole proprietorship, partnership, corporation, or LLC.

Company Objectives

The clearly defined targets or goals that a business aims to achieve over a specific period of time.

Business Plan

A detailed document outlining the strategy, objectives, market analysis, financial forecasts, and operational structures for a new or existing business.

Collateral

Assets that are pledged as security for repayment of a loan, forfeited in case of a default.