Assume the U

question 22

Multiple Choice

Assume the U.S. one-year interest rate is 9%, while the Chilean one-year interest rate is 13%. If the Chilean peso ____ by ____%, a U.S.-based MNC would incur the same financing cost in dollars versus Chilean pesos over a one year period.

• A) depreciates; 3.54
• B) appreciates; 3.54
• C) depreciates; 3.67
• D) appreciates; 3.67

---

Definitions:

Active Listening

The practice of giving full attention to a speaker, understanding their message, and responding thoughtfully.

Own Biases

Own biases are the preset inclinations or prejudices an individual holds towards other people, objects, or ideas, often unconsciously influencing their perceptions and decisions.

Listening for Feelings

Paying attention to and understanding the emotions or sentiments expressed by someone, beyond just the words spoken.

Clearing Your Mind

The process of removing distractions and worries to focus better or relax.