Assume an Australian importer expects to pay 16,000 Australian dollars (AUD) for $8,000 worth of U.S. goods, but on the shipment date 30 days later, the same volume of U.S. goods costs the Australian importer only 10,000 Australian dollars. This means that between the contract date and the payment date, the exchange rate has changed:
a. from $1 = 1.25 AUD to $1 = 2.0 AUD.
b. from $1 = 2.0 AUD to $1 = 1.25 AUD.
c. from $1 = 0.8 AUD to $1 = 0.5 AUD.
d. from $1 = 0.5 AUD to $1 = 0.8 AUD.
e. from $1 = 0.5 AUD to $1 = 2.0 AUD.
b
You might also like to view...
In the simple deposit expansion model, if the required reserve ratio is 10 percent and the Fed increases reserves by $100, checkable deposits can potentially expand by
A) $100. B) $250. C) $500. D) $1,000.
Explain how each of the following affects the natural rate of unemployment: a . the introduction of unemployment programs that temporarily replace lost income for unemployed workers b. government funding for campus career placement centers that teach
students how to write resumes and interview, and that schedule and coordinate on-campus interviews with potential employers c. government legislation that mandates that large employers hold jobs for employees who leave to take care of infants or sick family members
Which of the following is not included in M2?
a) coins b) gold c) savings accounts d) retail money market mutual funds e) overnight repurchase agreements
Describe the primary functions of the World Bank, the IMF, and the WTO. When was each of these organizations formed?
What will be an ideal response?