Suppose That the Exchange Rate Is 50 Bangladesh Taka Per

question 186

Multiple Choice

Suppose that the exchange rate is 50 Bangladesh taka per Canadian dollar, and that a bushel of rice costs 200 taka in Bangladesh and $3 in Canada. Which statement is consistent with these facts?

• A) The real exchange rate is greater than one, and arbitrageurs could profit by buying rice in Canada and selling it in Bangladesh.
• B) The real exchange rate is greater than one, and arbitrageurs could profit by buying rice in Bangladesh and selling it in Canada.
• C) The real exchange rate is less than one, and arbitrageurs could profit by buying rice in Canada and selling it in Bangladesh.
• D) The real exchange rate is less than one, and arbitrageurs could profit by buying rice in Bangladesh and selling it in Canada.

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relating to the nerves or nervous system, or described as easily agitated or anxious.

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Relating to the system of organs responsible for the production, storage, and expulsion of urine.

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A type of epithelial tissue characterized by multiple layers of flat, closely packed cells, which provides protection against mechanical stress and abrasion.