If Goods in Canada Cost the Same Number of Dollars

question 85

Multiple Choice

If goods in Canada cost the same number of dollars as German goods cost in euros, the real exchange rate would be computed as how many German goods per Canadian goods?

• A) one
• B) the price of the Canadian goods
• C) the amount of German currency that can be bought with one unit of Canadian currency
• D) the amount of Canadian currency that can be bought with one unit of German currency

---

Definitions:

Reacquired

Refers to assets or shares that a company buys back from investors or shareholders.

Par Common Stock

The nominal or face value assigned to common stock shares in the articles of incorporation.

Paid-In Capital

The total amount of money that shareholders have invested in a company through the purchase of its stock, including both common and preferred shares.

Corporate Charter

A formal document that establishes a corporation's existence, outlining its structure, objectives, and regulations.