14-82 What Is the End of Year Profit or Loss

question 93

Essay

14-82 What is the end of year profit or loss on the bank's cash position if in one year both Canadian bond rates increase to 7.5 percent and the exchange rate falls to US$0.765 per Canadian dollar? (Assume no change in U.S.interest rates.)
a.Loss of US$12,000.
b.Loss of US$75,000.
c.Profit of C$9,000.
d.Profit of US$50,000.
e.Loss of C$119,800.

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Definitions:

External Environment

Refers to factors outside of an organization that can impact its operation and success, including economic, political, social, technological, and legal factors.

Strategy Success

The achievement of predetermined objectives and goals through the effective implementation of a plan.

Performance Determinant

A factor that significantly influences the outcome or level of performance in a task or activity.

Process Reliability

The extent to which a process consistently produces the same results over time, ensuring stability and predictability in its outcomes.