Karen Has Arrived in Switzerland and Has a Choice of Exchanging

question 68

Multiple Choice

Karen has arrived in Switzerland and has a choice of exchanging her dollars at the airport foreign exchange counter (with a dollar/franc rate of 1.2543) , or waiting and exchanging her dollars at the Union Bank of Switzerland in Lucerne (with a dollar/franc rate of 1.2743) . Which location should she choose?

• A)the Bank of Switzerland in Lucerne
• B)The airport
• C)Either one; the rate is the same
• D)None of the above

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Definitions:

Retained Earnings

A portion of company profits not paid out as dividends but reinvested in the business, used for debt payment, or saved as cash reserves.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to maintain the operation.

Re-Invested

Capital or earnings that are put back into a business or investment to support growth or generate additional revenue.

Company

An entity engaged in commercial, industrial, or professional activities, either as a single individual or a group of people structured as a corporation, partnership, or sole proprietorship.