Use the Following Table of Exchange Rates to Solve the Problem

question 101

Multiple Choice

Use the following table of exchange rates to solve the problem. Round your answer when appropriate. $$\begin{array} { l | c | c } \text { Currency } & \text { Dollars per Foreign } & \text { Foreign per Dollar } \\\hline \text { British pound } & 1.624 & 0.6158 \\\text { Canadian dollar } & 1.005 & 0.9950 \\\text { European euro } & 1.320 & 0.7576 \\\text { Japanese yen } & 0.0120 & 83.33 \\\text { Mexican peso } & 0.07855 & 12.73\end{array}$$
-Which is worth most, 1 British pound, 1 Canadian dollar, 1 European euro, or 1 dollar?

• A)1 Canadian dollar
• B)1 dollar
• C)1 European euro
• D)1 British pound

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Definitions:

Binding Price Ceiling

A government-imposed limit on the price of a good or service that is set below the market equilibrium, leading to shortages.

Consumers

Individuals or entities that use, or consume, goods and services produced within an economy, driving demand and market dynamics.

Rationing Mechanisms

Methods or systems used to allocate scarce resources among competing uses.

Binding Price Ceilings

Government-imposed limits on the price of goods or services that are set below the market equilibrium price, leading to shortages.