A US Bank Converted $1 Million to Swiss Francs to Make

question 20

Multiple Choice

A U.S. bank converted $1 million to Swiss francs to make a Swiss franc loan to a valued corporate customer when the exchange rate was 1.2 francs per dollar. The borrower agreed to repay the principal plus 5 percent interest in one year. The borrower repaid Swiss francs at loan maturity and when the loan was repaid the exchange rate was 1.3 francs per dollar. What was the bank's dollar rate of return?

• A)26.00 percent
• B)−2.69 percent
• C)7.14 percent
• D)−3.08 percent
• E)5.00 percent

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Definitions:

30 Facets

A term likely referring to a model or framework that describes thirty distinct aspects or dimensions of personality or other constructs; however, the specific model it refers to is not universally defined.

Conners 3

A psychological assessment tool specifically designed for diagnosing Attention Deficit Hyperactivity Disorder (ADHD) in children and adults.

Reasonably High Reliabilities

Indicates that a test or measurement consistently produces stable and accurate results over repeated applications.

MMPI

The Minnesota Multiphasic Personality Inventory (MMPI) is a comprehensive standardized test used in psychology for assessing personality structure and psychopathology.