Calculate the dollar price of a German automobile worth 40,000 euros, if the dollar per euro exchange rate is 1.5
a. $41,500
b. $26,700
c. $60,000
d. $50,000
e. $38,500
c
You might also like to view...
Arbitrage refers to the act of
A) buying a product in one market at a low price and reselling in another market at a higher price. B) suing a producer for illegal business practices. C) trading in the foreign exchange market. D) resolving a dispute in front of an arbitrator instead of a court of law.
Which of the following could be considered a macroeconomic issue?
A. T-Mobile and MetroPCS finalize a merger. B. Twinkies goes bankrupt, and the entire snack industry experiences losses. C. The unemployment rate in the US falls to 7.5 percent from 7.7 percent during the month of June. D. The decision of Microsoft to offer a free upgrade to Windows 10.
If two investments are uncorrelated:
A. there is no benefit from diversification. B. there is no benefit to hedging. C. diversification reduces risk without changing the expected payoff. D. diversification reduces both risk and the expected payoff.
Suppose that there is an improvement in technology in the market for Samsung phones. Which of the following is TRUE?
A. Demand will increase and the market clearing price will fall. B. Supply will increase and the market clearing price will fall. C. Demand will increase and the market clearing price will rise. D. Supply will increase and the market clearing price will rise.