A Retailer Sells a Good to a Consumer for £500

question 69

Multiple Choice

A retailer sells a good to a consumer for £500. The cost of all the inputs used to produce the good is equal to £210. The value added of the retailer will be equal to _____.

• A) £210
• B) £500
• C) £290
• D) £790

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Definitions:

Foreign Exchange Gain

Profit derived from the appreciation of one currency against another in the context of foreign exchange trading or transactions.

Foreign Exchange Loss

A loss resulting from the devaluation of the home currency against a foreign currency in transactions.

Forward Exchange Contract

A financial agreement to exchange a set amount of currencies at a specified rate on a predetermined future date.

Cash Flow Hedge

A financial risk management tool aimed at safeguarding against variances in cash inflows and outflows due to market volatilities.