Consider the Following Spot Exchange Rates: $2

question 125

Multiple Choice

Consider the following spot exchange rates: $2.56/£, ¥65.62/$, DM1.0/$, and L1,263/$.Which of the following seems to violate the law of one price if gold sells for $464 per ounce in the Canada? Dollars in the exchange rates are Canadian.

• A)1 troy oz.gold = £181,250
• B)1 troy oz.gold = ¥30,448
• C)1 troy oz.gold = DM464
• D)1 troy oz.gold = L550,500

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Definitions:

Déjà Vu

The eerie and often unsettling feeling of having previously experienced a situation or moment that is currently happening.

Subliminally Flashed

Pertains to stimuli presented below the threshold of conscious perception, often used in psychological experiments to explore the unconscious mind.

Memory Distortion

the alteration or incorrect recall of memories, often influenced by subsequent information, experiences, or the passage of time.

False Memories

This involves the recall of events that did not actually happen, often influenced by suggestion or the merging of actual memories with misinformation.