Suppose That the U

question 60

Multiple Choice

Suppose that the U.S. dollar buys 100 Japanese yen. Gold costs $500 per ounce in New York and 20,000 yen per ounce in Tokyo. What does the law of one price predict will happen?

• A) Nothing will happen.
• B) Traders will avoid the U.S. market and exchange only in Tokyo, where the price of gold is lower.
• C) Traders will buy gold in the United States and sell it in Japan.
• D) Traders will buy gold in Japan and sell it in the United States.

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Definitions:

Biopsychosocial Approach

An integrated approach that considers biological, psychological, and social factors and their complex interactions in understanding health, illness, and healthcare delivery.

Consistent Cheerfulness

The tendency to exhibit a positive, optimistic demeanor and mood across various situations and over time.

External Locus of Control

The belief that external forces beyond one's personal control determine life's events, leading to a perception of having little influence over one's fate.

Luck

The experience of notably positive, negative, or improbable events.