How can one profit through arbitrage if the dollar per euro exchange rate in London is $2 per pound while in New York is $1.95 per pound?
A. Buy pounds in London and sell them in New York
B. Buy dollars in London and sell pounds in New York
C. Buy dollars in New York and sell them in London
D. Buy pounds in New York and sell them in London
Answer: D
You might also like to view...
The marginal benefit to you of drinking one more bottled iced tea is $1.50 . The price of a bottle of iced tea is $1.25. a. If you purchase iced tea you will suffer a net loss of 25 cents per bottle
b. If you purchase a bottle of iced tea, the net gain to you from doing so is 25 cents. c. You will not purchase iced tea if you are acting rationally. d. If you are acting rationally, you will purchase iced tea until the marginal benefit falls to 25 cents.
Which of the following is not an effective method of reducing negative externalities?
a. relying on voluntary compliance b. taxing the output of industries that pollute c. creating legal environmental standards d. increasing public spending on cleanup and reduction of pollution
Refer to the graph shown. When price increases from $4 to $6, total revenue:
A. decreases from $200 to $150. B. increases from $200 to $250. C. increases from $150 to $200. D. decreases from $250 to $200.
Which of the following is correct?
A. Both purely competitive and monopolistic firms are "price takers." B. Both purely competitive and monopolistic firms are "price makers." C. A purely competitive firm is a "price taker," while a monopolist is a "price maker." D. A purely competitive firm is a "price maker," while a monopolist is a "price taker."