[30] The exchange rate on June 19, 2020, 1 USD against SGD was 1.394. Short term interest rate, in each Singapore dollar and United States dollar are 2.5% and 0.25% respectively. Suppose one year forward rates of Singapore dollar against 1 US Dollar is 1.45.

You are required:

[20] Suppose you want to borrow USD 1,000, could you make a profit or not from an arbitrage in one year later, and how much money you get it?

[10] Based on the information above, is it good or not for economy of Singapore? Give some reasons.