If the Direct Exchange Rate Between U

question 116

Multiple Choice

If the direct exchange rate between U.S.Dollars and pounds sterling is 1.50/1, how much should you be willing to pay to receive 350 pounds?

• A)$175.00
• B)$233.33
• C)$367.50
• D)$525.00

Understand and apply the concept of exchange rates in international finance.

Analyze the impact of inflation rates on exchange rates and international project values.

Understand and apply the principle of triangle and covered interest arbitrage for profit.

Calculate the net present value (NPV) of international projects in different currencies.

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Definitions:

Main Memories

Refers to the primary storage or RAM of a computer, where programs and data are kept for quick access by the processor.

Word

In computing, it represents a fixed-sized piece of data handled as a unit by the instruction set or the hardware of the processor.

ALU

Arithmetic Logic Unit, the part of the CPU responsible for performing arithmetic and logic operations.

Computations

The process of performing mathematical or logical operations to process data and produce results.