Suppose One British Pound Can Purchase 1

question 47

Multiple Choice

Suppose one British pound can purchase 1.82 U.S.dollars today in the foreign exchange market,and currency forecasters predict that the U.S.dollar will depreciate by 12.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?

• A)$1.4860
• B)$1.6511
• C)$1.8346
• D)$2.0384
• E)$2.2422

---

Definitions:

Foreign Investors

Individuals or companies from one country investing in assets or businesses in another country, influencing the host country's economy.

Vital Life Functions

The essential bodily processes necessary for maintaining life, including respiration, circulation, and digestion.

Irreversible Cessation

A permanent halt in function or activity, often used in the context of the cessation of biological life functions or processes.

Stage Theory

A theory of development characterized by distinct periods of life.