If US Goods Cost 1/5 of One Dollar for Every

question 20

Multiple Choice

If US goods cost 1/5 of one dollar for every Markka Finnish goods cost,the real exchange rate would be computed as how many Finnish goods per U.S.goods?

• A)five
• B)one fifth the price of the U.S.goods
• C)the amount of Markka that can be bought with 1/5 of one dollar.
• D)None of the above is correct.

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Definitions:

Salary Allowances

Additional monetary benefits provided to employees on top of their regular salary, potentially for specific purposes or expenses.

Capital Account

An account on a country's balance of payments that records transactions involving the purchase and sale of assets, representing changes in ownership of international assets.

Partnership Agreement

A contract between partners in a business that outlines the terms of the partnership, roles, and share of profits or losses.

Profits and Losses

Profits and losses correspond to the financial gains or losses generated by a company's operations over a specific period, reflecting its economic performance.