If the current exchange rate is 0.65 British pounds per dollar, what is the dollar price of one British pound? If the exchange rate changes to 0.70 British pounds per dollar, what is the new dollar value of one British pound?
What will be an ideal response?
At 0.65 pounds per dollar, 1 dollar / 0.65 pounds = $1.54 per pound.
At 0.70 pounds per dollar, 1 dollar / 0.70 pounds = $1.43 per pound.
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Answer the next question based on the following consolidated balance sheet for the commercial banking system.AssetsLiabilities + Net WorthReserves$50,000Checkable deposits$120,000Loans75,000Stock shares130,000Securities25,000 Property100,000 If the reserve requirement is 15% and the table above represents the balance sheet for the whole commercial banking system rather than a single bank, then loans and deposits could expand by a maximum of approximately
A. $415,373. B. $333,500. C. $120,000. D. $213,333.
Which of the following is not a source of economies of scale?
a. Division and specialization of labor. b. Increase in output. c. More efficient use of capital. d. All of the above. e. Centralized marketing.
A 2009 article in The Economist noted that some studies have provided evidence indicating that multipliers are
a. smaller in closed economies than in open economies. b. larger in closed economies than in open economies. c. smaller in capitalist economies than in socialist economies. d. larger in capitalist economies than in socialist economies.
Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?
A. division of labour B. international trade C. economies of scale D. command economy