Instruction 13.1: Use the Information to Answer the Following Question(s)

question 69

Multiple Choice

Instruction 13.1:
Use the information to answer the following question(s) .
In September 2009 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.30/euro. At the end of one year the spot rate is $1.35/euro.
-Refer to Instruction 13.1. How many euros will the U.S. investor acquire with his initial $500,000 investment?

• A) €650,000
• B) €370,370
• C) €500,000
• D) €384,615

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Definitions:

Raw Materials

Basic materials or substances used in the production or manufacturing of goods.

Finished Products

Items or goods that have completed the manufacturing or production process and are ready for sale or distribution.

Exchange Process

Activity in which two or more parties give something of value to each other to satisfy perceived needs.

Time Utility

Availability of a good or service when customers want to purchase it.