The Table Below Shows the Quantities of Toffee Bars and Bags

question 85

Multiple Choice

The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1-week period.
Toffee (bars) Cashews (bags)
TABLE 6-1
-Refer to Table 6-1.If the prices of toffee bars and bags of cashews are both $1 and this consumer has $11 per week to spend on snacks,how many of each will he/she purchase?

• A)3 toffee bars and 8 bags of cashews
• B)4 toffee bars and 7 bags of cashews
• C)5 toffee bars and 5 bags of cashews
• D)5 toffee bars and 6 bags of cashews
• E)6 toffee bars and 5 bags of cashews

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Definitions:

Swap

A derivative contract through which two parties exchange financial instruments, typically involving cash flows based on a notional principal amount.

Floating Rate Debt

A type of debt instrument with a variable interest rate that adjusts periodically based on a benchmark interest rate or index.

Risk-Free Rates

The theoretical rate of return of an investment with no risk of financial loss, typically represented by the yield on government securities.

Arbitrage Opportunities

Situations where a security or asset is simultaneously priced differently in two or more markets, allowing for risk-free profit through simultaneous buying and selling.