If the Price in U

question 27

Multiple Choice

If the price in U.S.dollars for one Singapore dollar is 0.625 U.S.dollars, then the price in Singapore dollars for one U.S.dollar is:

• A)1.0 Singapore dollars.
• B)0.625 Singapore dollar.
• C)1.6 Singapore dollars.
• D)0.375 Singapore dollar.
• E)2.66 Singapore dollars.

Understand and apply the principle of triangle and covered interest arbitrage for profit.

Calculate the net present value (NPV) of international projects in different currencies.

Comprehend the basics of purchasing power parity and its application in international finance.

Understand strategies for reducing long-run exposure risks in foreign exchange.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.