Assume That $1 Is Equal to £

question 38

Multiple Choice

Assume that $1 is equal to £.77 and equal to C$1.27. Based on this, you could say that C$1 is equal to: C$1(£.77/C$1.27) = £.61. The exchange rate of C$1 = £.61 is referred to as the:

• A) open exchange rate.
• B) cross-rate.
• C) backward rate.
• D) forward rate.
• E) interest rate.

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Definitions:

In-Kind Transfer

A form of payment made in goods and services rather than in cash to beneficiaries, often used in social programs.

Negative Income Tax

A proposed form of social assistance that provides income support by giving individuals a guaranteed minimum income, with payments decreasing as the recipient's income rises.

Food Stamps

A government-issued coupon or electronic card system used to assist in purchasing food for those in need.

Official Poverty Line

The minimum level of income deemed adequate in a particular country to live, which is used to determine who is classified as impoverished or in need of financial assistance.