Ernest Went to Boston to Negotiate Several New Contracts with Clients

question 96

Multiple Choice

Ernest went to Boston to negotiate several new contracts with clients. His airfare was $400 and he spent $150 per day on lodging, $40 per day on meals, and a total of $60 on cab fare.
I.If Ernest spends 2 days on business and 3 days on personal activities, he can deduct $160 of his airfare.
II.If Ernest spends 3 days on business and 2 days on personal activities, he can deduct $120 of the meal costs.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Canadian Dollars

The recognized monetary unit of Canada, symbolized by CAD or C$.

Exchange Rates

The rate at which one currency can be exchanged for another, affecting international trade and finance.

Estonian Kroon

The former currency of Estonia, which was replaced by the euro in 2011.

Interest Rate Parity

A financial theory stating the relationship between interest rates and the exchange rate between two currencies.