Table 3-2 -Refer to Table 3-2

question 104

Multiple Choice

Table 3-2
$\begin{array}{|c|c|c|c|c|}\hline&\text { Labour hours needed to produce one unit of: }&&\text { Amount produced in } 60 \text { hours: }\\\hline & \text { Butter (kg) } & \text { Butter (kg } & \text { Rice (kg) } & \text { Rice (kg) } \\\hline \text { Lee } & 6 & 10 & 15 & 4 \\\hline \text { John } & 3 & 20 & 15 & 4\\\hline\end{array}$
-Refer to Table 3-2.The opportunity cost of 1 kg of butter for John is:

• A)3/2 kg of rice
• B)4/3 kg of rice
• C)3/4 kg of rice
• D)2/3 kg of rice

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Definitions:

Foreign Exchange Market

The market where one country’s currency is traded for another’s.

Spot Exchange Rate

The exchange rate on a spot trade.

Forward Exchange Rate

The agreed-on exchange rate to be used in a forward trade.

Premium

The amount paid for a contract or policy over and above its nominal value or for a product above its market price due to special features or quality.