Suppose That the One-Year U

question 36

Multiple Choice

Suppose that the one-year U.S.interest rate is 13% and the one-year Swiss interest rate is 2%.If the current spot rate is $1.40 per Swiss franc,what must the one-year forward rate $/SFr be according to the approximate covered interest parity?

• A) 1.246
• B) 1.330
• C) 1.470
• D) 2.100

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Definitions:

Performance Appraisal

The systematic evaluation of an employee's performance in their job role, often used for developmental or reward decisions.

Measurement Error

refers to the difference between the actual value and the measured value caused by imprecision or inaccuracies in data collection or analysis.

Job Breadth

The extent of responsibilities and variety of tasks included in a job.

Individual Difference Moderators

Variables that influence how different people respond to the same situation or treatment.