A Paint Producer in Nigeria Wishes to Calculate the Weighted

question 9

Multiple Choice

A paint producer in Nigeria wishes to calculate the weighted aggregate for components of its paint. In the past 5 years the cost of the base paint (per 100 litres) has increased from NGN (Nigerian Naira) 38500 to NGN 40500 and the cost of coloured dyes from NGN 6200 to NGN 7400. Base paint and colour are used in a ratio of 100:1. Calculate the weighted aggregate (1 decimal place) .

• A) 103.8
• B) 104.7
• C) 105.2
• D) 106.8

---

Definitions:

International Monetary Reserves

Assets that central banks and monetary authorities hold in foreign currencies, including foreign banknotes, bank deposits, bonds, treasury bills, and other government securities, to back its liabilities.

Demand for Pounds

Refers to the desire or requirement for British pounds in the foreign exchange market, usually driven by trade, investment, or speculation needs.

Fixed Exchange Rates

A currency system where the value of a currency is pegged to another currency, a basket of currencies, or a valuable commodity like gold.

World Liquidity

The availability of global financial assets that can be easily exchanged or used for transactions.