Use the Figure Below to Answer the Following Questions

question 13

Multiple Choice

Use the figure below to answer the following questions. Figure 6.3.2
-Refer to Figure 6.3.2.Government revenue from the tax is

• A)zero.
• B)$100.
• C)$300.
• D)$400.
• E)$600.

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Definitions:

Calendar Year End

The end of an accounting period that concludes on December 31st.

Forward Contract

A financial derivative contract between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Canadian Dollars

The currency of Canada, represented by the symbol CAD or C$.

Foreign Exchange Risk

The possibility of losing value due to changes in currency exchange rates.