Use the Following Information to Answer the Following Question(s)

question 76

Multiple Choice

Use the following information to answer the following question(s) .

-The direct three-month forward rate for the U.K.pound is 1.4496; the pound is expected to

• A)stay the same against the dollar.
• B)weaken against the dollar.
• C)fluctuate randomly against the dollar.
• D)strengthen against the dollar.

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Definitions:

Net Profit

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue, indicating the overall profitability of a business.

Fixed Asset Turnover Ratio

A financial metric that measures a company's efficiency in using its fixed assets to generate sales, calculated by dividing sales by the book value of fixed assets.

Net Fixed Assets

The value of a company's property, plant, and equipment minus any accumulated depreciation, representing long-term investments in the business.

Sales

The exchange of goods or services for money; also refers to the function or department within a business that handles this activity.