Multiple Choice
What is the end-of-year profit or loss to the bank if in one year the exchange rate falls to US $0.765 per Canadian dollar? (Assume that there is no change in interest rates.)
A) Loss of US $75,000.
B) Profit of C $274,000.
C) Loss of US $7,000.
D) Profit of C $9,000.
E) Loss of US $5,000.
Correct Answer:
Verified
Correct Answer:
Verified
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