Suppose the Swiss Franc Revalues from $0

question 9

Multiple Choice

Suppose the Swiss franc revalues from $0.40 at the beginning of the year to $0.44 at the end of the year.U.S.inflation is 5% and Swiss inflation is 3% during the year.What is the real devaluation ? or real revaluation + of the Swiss franc during the year?

• A)+ 7.9%
• B)- 5.3%
• C)+ 8.1%
• D)- 1.6%

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Definitions:

Anticipated Life Span

The expected duration or period during which an asset, product, or individual is considered useful or viable.

Pension Expense

The cost recognized in an accounting period related to the company's pension plan.

Defined Contribution Pension Plan

A type of retirement plan where an employer, employee, or both make contributions and the final payout depends on the plan's investment performance.

Pension Fund

A pool of assets forming an independent legal entity that is used to fund pension plan benefits promised to employees upon retirement.