Assume the Following Exchange Rates: $1 = NZ$3, NZ$1 =

question 6

Multiple Choice

Assume the following exchange rates: $1 = NZ$3, NZ$1 = MXP2, and $1 = MXP5. Given this information, as you and others perform triangular arbitrage, the exchange rate of the New Zealand dollar (NZ) with respect to the U.S. dollar should ____, and the exchange rate of the Mexican peso (MXP) with respect to the U.S. dollar should ____.​

• A) ​appreciate; depreciate
• B) ​depreciate; appreciate
• C) ​depreciate; depreciate
• D) ​appreciate; appreciate
• E) ​remain stable; appreciate

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Definitions:

Presidential Election

The process by which the President of the United States is elected, typically held every four years.

Republican Party

One of the two major contemporary political parties in the United States, historically committed to conservativism and pro-business policies, with its origins in the anti-slavery movement of the mid-19th century.

Voting Patterns

The trends or habits in voting behavior among specific groups of people or regions, often studied to understand political shifts or preferences.

Colored Merchants Association

An early 20th-century organization founded by African Americans to support and promote black-owned businesses against racial discrimination.