Assume You Can Exchange $100 Today for C$109

question 4

Multiple Choice

Assume you can exchange $100 today for C$109.58 or for 1,304 Mexican pesos. Assume that last year, $100 was equivalent to C$105.48 or 1,310 Mexican pesos. One hundred dollars converted into ________ last year can now be converted into ________.

• A) Canadian dollars; $103.89.
• B) Mexican pesos; $99.54.
• C) Mexican pesos; $100.38.
• D) Canadian dollars; $96.26.
• E) Canadian dollars; $101.20.

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Definitions:

Contractual

Pertaining to, or characterized by, a contract or agreement between two or more parties.

Damages Recoverable

The amount of money that can be claimed or awarded as compensation for loss or injury in a legal action.

Dollar Limits

The maximum amount of money that can be claimed from a jurisdictional perspective or under a specific insurance policy.

Breach Of The Insurance Contract

occurs when either the insurer or the insured fails to fulfill their contractual obligations in an insurance policy.