Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If a firm in Mexico wanted to purchase $100,000 worth of U.S. televisions, how many pesos must they exchange?
A) 10,000 pesos
B) 100,000 pesos
C) 1,000,000 pesos
D) 11,000,000 pesos
Answer: C
You might also like to view...
Refer to Table 2-4. What is George's opportunity cost of mowing a lawn?
A) one-half of a garden cultivated B) two lawns mowed C) two-thirds of a garden cultivated. D) one and a half lawns mowed
The shorter the "pass-through" period, the ________ the desirable BOT effects of devaluation on quantities traded will appear
A) sooner B) longer C) bigger D) smaller
Which of the following is most central to the understanding of the economic crisis of 2008?
a. the decline of the stock market in late 2007 b. the housing boom (2001-2005) and bust (2007-2008) c. the sharp rise in oil prices in 2008 d. unethical investment practices beginning in 2000
If imports and exports are equal, the net export line:
A. is horizontal at $0. B. is vertical at $0. C. is horizontal at the value of imports. D. slopes upward starting at the value of exports.