Which of the Following Is NOT an Example of a Factor

question 29

Multiple Choice

Which of the following is NOT an example of a factor that can significantly influence exchange rates?

• A) The cost to purchase a loaf of bread in the U.S. has increased by $0.50 while the cost has remained the same in London.
• B) The cost of capital has increased by 2% in the U.S. and has decreased by 2% in Germany.
• C) Interest rates on short-term investments in the U.S. have decreased to 4% while interest rates in Japan are at 8%.
• D) The U.S. has begun to export a higher level of goods to China than the prior year.
• E) All of the above are factors that influence exchange rates.

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Definitions:

Reality Shock

The feeling of surprise and disorientation experienced when one's expectations clash with the actual reality.

Psychological Contract

An unwritten and implicit agreement between an employer and an employee that outlines mutual expectations, including job security, loyalty, and commitment.

Psychological Contract Breach

The perception that an employer has failed to fulfill one or more unwritten expectations or promises to an employee.

Sense of Betrayal

The feeling experienced when one believes that they have been deceived or let down by others, breaking a presumed trust.