Suppose Stackpool Inc

question 28

Multiple Choice

Suppose Stackpool Inc.had inventory in Britain valued at 240,000 pounds one year ago.The exchange rate for dollars to pounds was 1£ = 2 U.S.dollars.This year the exchange rate is 1£ = 1.82 U.S.dollars.The inventory in Britain is still valued at 240,000 pounds.What is the gain or loss in inventory value in U.S.dollars as a result of the change in exchange rates?

• A) −$240,000
• B) −$43,200
• C) $0
• D) $43,200
• E) $47,473

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Definitions:

Bahrain

A small island nation in the Persian Gulf, known for its financial sector, oil production, and as a regional hub for trade and culture.

Saudi Arabia

A country located on the Arabian Peninsula, known for its vast oil reserves and as the birthplace of Islam.

Occupy Movement

The Occupy Movement was an international protest movement against social and economic inequality, primarily known for its initial Occupy Wall Street demonstration in New York City in 2011.

Grassroots Protest

A movement or campaign that originates from the community level or from the bottom-up, often involving widespread public participation and activism.