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NEW QUESTION: 1
Country W hosts a large music competition every 5 years, which is attended by many international musicians.
The success of the competition is dependent upon effective Customer Relationship Marketing being established with many different market groups around the world. These include music colleges who send their students, broadcasting companies who broadcast the event on radio and television, audience members, online ticket sellers and music journalists who write about the competition in specialist journals.
Using Payne's 'Six Markets Model', which of the following is the correct classification for the music journalists writing about the competition?
A. Influence market
B. Supplier market
C. Customer market
D. Referral market
Answer: C

NEW QUESTION: 2
A technician is giving a safety class to new employees. Which of the following contains potentially dangerous voltages and should be handled with care, even if the power has
been recently disconnected?
A. Laser printer
B. CRT monitor
C. Paper shredder
D. Wireless router
Answer: B

NEW QUESTION: 3
Robert Williams is a junior analyst at Anderson Brothers, a large Wall Street brokerage firm. He reports to Will McDonald, the chief economist for Anderson Brothers. McDonald provides economic research, forecasts, and interpretation of economic data to all of Anderson's investment departments, as well as the firm's clients. McDonald has asked Williams to analyze economic trends in the country of Bundovia. The currency of Bundovia is the Bunco (BU).
Williams first analyzes the effect of rising nominal Bundovian interest rates relative to U.S interest rates on the supply and demand for BU. He determines that the increase in Bundovian nominal interest rates would increase the demand for BU and, because the BU supply curve is upward sloping, the BU will appreciate and the equilibrium quantity of BU will increase proportionately.
Bundovia has announced plans to impose either a tariff or a quota on semiconductor imports from the United States. McDonald also asks Williams to analyze the potential effect on Bundovian Semiconductors, the dominant semiconductor manufacturer located in Bundovia. Currently, Bundovian Semiconductors is not competitive in the global semiconductor market because its higher production costs make it unable to generate profits at the current world market price. Williams concludes that the imposition of either a tariff or quotas would benefit Bundovian Semiconductors. The company would become competitive with foreign producers in its domestic semiconductor market because imports would be reduced and domestic production would rise.
Exhibit 1 shows the trend in the average BU/USD exchange rate over the past three years.

Williams asks the bank for a GBP/SFr cross rate.
From the same bank, Williams receives the following forward rate quotes in the USD/GBP market:
* 30-day forward rate: USD/GBP = USD/GBP = 2.0045 - 55
* 60-day forward rate: USD/GBP = USD/GBP = 2.0075 - 85
Williams has uncovered a potential arbitrage opportunity in the foreign exchange markets. The current spot rate is $2.00 per BU. The Bundovian risk-free interest rate is 3%, and the one-year forward rate is $2.10 per BU. The U.S. risk-free rate is 5%.
Is the USD selling at a 30-day forward premium or discount to the GBP, and what is the size of the 30-day premium or discount in annualized percentage terms?
Premium or discount Annualized percentage
A. Premium 3.9%
B. Discount 2.1%
C. Premium 2.1%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Use the mid-points of the spot and forward bid-ask spreads {2.0015 and 2.0050, respectively) to calculate the premium or discount. Notice that the quotes are in USD/GBP with GBP as the reference currency, so to calculate the 30-day forward premium or discount on the USD, take the reciprocal of each mid-point.

(Study Session 4, LOS 18.g)

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