Suppose That the Following Situation Exists in the Foreign Exchange

question 19

Multiple Choice

Suppose that the following situation exists in the foreign exchange market. 1 Canadian dollar buys 5.77 South African rand. If the price of a bottle of South African wine is 32 rand, what is the price in Canadian dollars if purchase power parity exists?

• A)$184.64
• B)$32.00
• C)$5.55
• D)$18.46
• E)$18.02

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Definitions:

Protista

A diverse kingdom of mostly unicellular organisms that are not plants, animals, or fungi, including algae, protozoa, and slime molds.

Genomes

The complete set of genes or genetic material present in a cell or organism, providing the biological blueprint for an organism’s structure and function.

Dogs

Domesticated carnivorous mammals that have been selectively bred for a variety of behaviors, sensory capabilities, and physical attributes.

Gray Wolf

A species of canid native to remote areas of North America, Eurasia, and North Africa, known for its role as a top predator in the ecosystem.