Suppose That the Exchange Rate Is 9 Moroccan Dirhams Per

question 115

Multiple Choice

Suppose that the exchange rate is 9 Moroccan dirhams per U.S.dollar.Also suppose that you can buy a crate of oranges for 360 dirhams in the Moroccan capital of Rabat and can buy a similar crate of oranges in Miami for $35 dollars.

• A)The real exchange rate is greater than one and arbitrageurs could profit by buying oranges in the United States and selling them in Morocco.
• B)The real exchange rate is greater than one and arbitrageurs could profit by buying oranges in Morocco and selling them in the United States.
• C)The real exchange rate is less than one and arbitrageurs could profit by buying oranges in the United States and selling them in Morocco.
• D)The real exchange rate is less than one and arbitrageurs could profit by buying oranges in Morocco and selling them in the United States.

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Definitions:

Unconscious Need

A desire or requirement of a consumer that they are not fully aware of, which can influence their purchasing behavior.

Buyer

An individual or organization that makes a purchase decision, acquiring goods or services in exchange for money.

Product

A product or service developed from a process, presented in the marketplace to fulfill a demand or desire.

SELL Sequence

A structured sales strategy emphasizing specific steps such as Show, Explain, Lead, and Lock to close a deal.